California Corporations Code

§ 5240

CORP § 5240 Effective Jan 1, 2016Div. 2 · Title 1 · Part 2 · Ch. 2 · Art. 4

Statute text

(a)This section applies to all assets held by the corporation for investment. Assets which are directly related to the corporation’s public or charitable programs are not subject to this section.

(b)Except as provided in subdivision (c), in investing, reinvesting, purchasing, acquiring, exchanging, selling and managing the corporation’s investments, the board shall do the following:

(1)Avoid speculation, looking instead to the permanent disposition of the funds, considering the probable income, as well as the probable safety of the corporation’s capital.

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Legislative history

Amended by Stats. 2015, Ch. 56, Sec. 1. (AB 792) Effective January 1, 2016.