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Cal. Corp. Code § 7310

Issuance of Memberships

Known as the Nonprofit Mutual Benefit Corporation Law

The act spans §§ 7110–8910 (196 sections).

Applied in 3 court decisions — leading case 232 Cal. App. 3d 1560 - Gantman v. United Pacific Insurance Co. (1991)

Most recently applied in Coalition for a Sustainable Delta v. Federal Emergency Management Agency (May 2010)

Amended by Stats. 1984, Ch. 812, Sec. 6.5.

How often courts cite this section

19912000201010
citing decisions per year

Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.

(a) A corporation may admit persons to membership, as provided in its articles or bylaws, or may provide in its articles or bylaws that it shall have no members. In the absence of any provision in its articles or bylaws providing for members, a corporation shall have no members.

(b) In the case of a corporation which has no members:

(1) Any action for which there is no specific provision of this part applicable to a corporation which has no members and which would otherwise require approval by a majority of all members (Section 5033) or approval by the members (Section 5034) shall require only approval of the board, any provision of this part or the articles or bylaws to the contrary notwithstanding.

(2) All rights which would otherwise vest in the members to share in a distribution upon dissolution shall vest in the directors.

(c) Reference in this part to a corporation which has no members includes a corporation in which the directors are the only members.

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