A 'Value' Approach For Calif. Corporate Distributions
April 25, 2012, 2:46 PM EDT
Law360, New York (April 25, 2012, 2:46 PM EDT) -- The amendments to the California Corporations Code that became effective earlier this year introduced a “value” determination to the statutory test that governs distributions to shareholders. This will apply to distributions of cash or property made by way of a dividend or through the repurchase or redemption of shares by California corporations, as well as by foreign corporations having significant ownership and operational ties to California (frequently called “pseudo-foreign corporations”).
The amendments to the distribution provisions (Sections 500-11) of the Corporations Code were included in Assembly...