republic-os/legislation/us/states/ca/20112012/ab-571.md

---
type: "Bill"
title: "Corporations: distributions."
description: "Existing law provides for the formation and governance of corporations. Existing law allows a corporation to make a distribution of cash or property to shareholders, including a dividend or a repurchase or redemption of shares, only if either the corporation has retained earnings prior to the distribution equal to or exceeding the amount of the distribution or the corporation can satisfy specified balance sheet test and liquidity requirements after giving effect to the distribution, and the distribution will not render the corporation insolvent."
jurisdiction: "us/states/ca"
legislature: "California Legislature"
session: "20112012"
identifier: "AB 571"
citation: "California AB 571 (20112012)"
classification: ["bill"]
subjects: ["Corporations: distributions."]
status: "enacted"
primary_sponsors: ["Hagman"]
version_count: 6
action_count: 21
vote_count: 5
first_action: "2011-02-16"
last_action: "2011-09-01"
source: "openstates"
source_identifier: "ocd-bill/4070197b-7dcf-4dab-8153-f26b2ec57388"
source_url: "http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201120120AB571"
source_hash: "ff964e0575e5d81d425b67b4f3dee2f7f0733f86dc737bb5c5d7f1b1e7254113"
vintage: "2026-07-01"
source_snapshot: "https://data.openstates.org/daily/2026-07-01/public.pgdump"
retrieved_at: "2026-07-06"
confidence: "reported"
tags: ["legislation", "bill", "us-ca"]
---

# California AB 571 (20112012) — Corporations: distributions.

Existing law provides for the formation and governance of corporations. Existing law allows a corporation to make a distribution of cash or property to shareholders, including a dividend or a repurchase or redemption of shares, only if either the corporation has retained earnings prior to the distribution equal to or exceeding the amount of the distribution or the corporation can satisfy specified balance sheet test and liquidity requirements after giving effect to the distribution, and the distribution will not render the corporation insolvent.

## Version chain

The bill's text revisions, in order — the diff chain from filing to enrollment.

1. **02/16/11 - Introduced** (filed) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=201120120AB571&version=20110AB57199INT)
2. **04/25/11 - Amended Assembly** (committee substitute) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=201120120AB571&version=20110AB57198AMD)
3. **07/05/11 - Amended Senate** (committee substitute) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=201120120AB571&version=20110AB57197AMD)
4. **09/01/11 - Chaptered** (committee substitute) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=201120120AB571&version=20110AB57195CHP)
5. **AB571** (committee substitute) — [source](http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201120120AB571)
6. **08/19/11 - Enrolled** (enrolled) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=201120120AB571&version=20110AB57196ENR)

## Votes

- AB 571 HAGMAN Consent Calendar Second Day — **74–0** (pass) · lower
- Do pass. — **6–0** (pass) · upper
- Do pass, to Consent Calendar. — **11–0** (pass) · lower
- AB 571 HAGMAN Concurrence in Senate Amendments — **72–0** (pass) · lower
- 3rd Reading AB571 Hagman By Walters — **37–0** (pass) · upper

## Sponsors

- Hagman — primary (person)
- Garrick — coauthor (person)
- Mansoor — coauthor (person)

## Timeline

The legislative action history — every referral, reading, and vote.

- **2011-02-16** Read first time. To print. `reading-1`
- **2011-02-17** From printer. May be heard in committee March 19.
- **2011-03-03** Referred to Com. on B. & F. `referral-committee`
- **2011-04-25** From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended. `reading-2, amendment-introduction, reading-1, amendment-passage`
- **2011-04-25** Re-referred to Com. on B. & F. `referral-committee`
- **2011-05-03** From committee: Do pass. To consent calendar. (Ayes 11. Noes 0.) (May 2). `committee-passage, committee-passage-favorable`
- **2011-05-04** Read second time. Ordered to consent calendar. `reading-2, reading-1`
- **2011-05-09** Read third time. Passed. Ordered to the Senate. (Ayes 74. Noes 0. Page 1281.) `reading-3, reading-1, passage`
- **2011-05-09** In Senate. Read first time. To Com. on RLS. for assignment. `reading-1`
- **2011-05-19** Referred to Com. on B. & F.I. `referral-committee`
- **2011-06-15** In committee: Hearing postponed by committee.
- **2011-06-30** From committee: Do pass. (Ayes 6. Noes 0.) (June 29). `committee-passage, committee-passage-favorable`
- **2011-07-01** Read second time. Ordered to third reading. `reading-2, reading-1`
- **2011-07-05** Read third time and amended. Ordered to second reading. `reading-3, reading-1, amendment-passage`
- **2011-07-06** Read second time. Ordered to third reading. `reading-2, reading-1`
- **2011-07-14** Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0. Page 1857.). `reading-3, reading-1, passage`
- **2011-07-14** In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 12 pursuant to Assembly Rule 77.
- **2011-08-18** Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 72. Noes 0. Page 2441.). `committee-passage-favorable, amendment-passage`
- **2011-08-24** Enrolled and presented to the Governor at 11:30 a.m.
- **2011-09-01** Approved by the Governor. `executive-signature`
- **2011-09-01** Chaptered by Secretary of State - Chapter 203, Statutes of 2011.

## Source

OpenStates / OpenCivicData bulk snapshot [2026-07-01](https://data.openstates.org/daily/2026-07-01/public.pgdump); origin `ocd-bill/4070197b-7dcf-4dab-8153-f26b2ec57388`. Confidence: reported (aggregated from official California legislature records).