§ 16402 Partner Distribution In Kind

Corporations Code·California

AI SummaryVerified

This rule says a partner can't claim a right to get property instead of cash, and also can't be forced to take such property.

Key Takeaways

•Partners have no right to ask for non‑cash (in‑kind) distributions.
•Partners cannot be forced to accept non‑cash distributions.
•Only cash distributions are covered by this rule.

Example

A small business partnership decides to give one partner a used delivery truck instead of cash for their share of profits.

The partner can say no to the truck and doesn't have a legal right to demand it, and the partnership can't make the partner accept it.

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

Official Source

View on CA.gov

§ 16402 Partner Distribution In Kind

A partner has no right to receive, and may not be required to accept, a distribution in kind. (Added by Stats. 1996, Ch. 1003, Sec. 2. Effective January 1, 1997.)

Last verified: January 10, 2026

Key Terms

distribution in kind partner

References

Official text at leginfo.legislature.ca.gov
California Legislature. Corporations Code. Section 16402.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References