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Cal. Corp. Code § 12420

Types of Memberships

Known as the Cooperative Corporation Law

The act spans §§ 12200–12704 (266 sections).

Amended by Stats. 2015, Ch. 192, Sec. 16

(a) Except as provided in subdivision (b), a corporation may issue memberships having different rights, privileges, preferences, restrictions, or conditions, as provided in its articles or bylaws. If the articles or bylaws authorize at least one class of voting memberships, a corporation may also authorize and issue additional classes of memberships, preferred or otherwise, that are divisible into a series or are nonvoting or both.

(b) All worker-members shall have the rights, privileges, preferences, restrictions, or conditions as provided in the articles or bylaws. This membership shall not be divided into partial memberships.

(c) A worker cooperative shall only make patronage distributions to the worker-member class.

Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.