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HomeCorporations CodeCh. 4Art. 1§ 12451 Annual Distribution Limit

§ 12451 Annual Distribution Limit

Corporations Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 12451 Annual Distribution Limit

This law says a company can't give out more than 15% of its money to members in a year.

Key Takeaways

  • •Companies can't give out more than 15% of their money in a year.
  • •This includes money from membership fees or other contributions.
  • •The rule helps make sure the company doesn't run out of money.

Example

A credit union has $100,000 from members.

It can only give back $15,000 to members that year.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 12451 Annual Distribution Limit

Distributions (Section 12235) in any fiscal year shall not exceed 15 percent, multiplied by contributions (whether by membership fees, capital credits, or otherwise) to capital. (Amended by Stats. 1983, Ch. 792, Sec. 23.)

Last verified: January 10, 2026

Key Terms

Distributionscontributions to capitalmembership feescapital credits

Related Statutes

  • § 12450 Corporate Dissolution Exemption
  • § 12452 Membership Purchase And Redemption
  • § 12453 Corporate Financial Solvency Restrictions
  • § 12454 Additional Restrictions Permitted
  • § 12454.5 Indivisible Reserves Account

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 12451.
View Official Source