California Codes, Business and Professions Code - BPC, Division 9 — Alcoholic Beverages, Chapter 3 — Licenses and Fees, Article 3 — Rights and Obligations of Licensees, Section 23365
Neither a corporation nor a limited partnership required to maintain a register under Section 23405.1 or licensed under Section 23405.2 engaged in the manufacture of distilled spirits shall, directly or indirectly, through affiliates, subsidiaries, or otherwise, distribute distilled spirits to its stockholders by dividend, or to its limited partners by return of capital contribution or share of profits, either by distribution in kind or the granting of purchase privileges. This section does not restrict the sale of alcoholic beverages to persons holding manufacturer's, distilled spirits manufacturer’s agent's, rectifier's, or wholesaler’s licenses.
Notes
Prohibits a corporation or limited partnership subject to the specified register or licensing requirements and engaged in distilled-spirits manufacturing from distributing spirits to stockholders or limited partners through dividends, capital returns, profit shares, in-kind distributions, or purchase privileges. Allows sales of alcoholic beverages to holders of specified manufacturer, agent, rectifier, or wholesaler licenses.
Use as reference
Lexinter.net | California Code, Business and Professions Code - BPC § 23365 | https://laws.lexinter.net/codes/california/business-and-professions-code/division-9/chapter-3/article-3/section-23365