Rights and Obligations of Members and Creditors
Known as the Nonprofit Mutual Benefit Corporation Law
The act spans §§ 7110–8910 (196 sections).
Applied in 4 court decisions — leading case 232 Cal. App. 3d 1560 - Gantman v. United Pacific Insurance Co. (1991)
Most recently applied in 149 Cal. App. 4th 724 - Heiman v. Workers' Compensation Appeals Board (March 2007)
Added by Stats. 1978, Ch. 567.
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 member of a corporation is not, as such, personally liable for the debts, liabilities, or obligations of the corporation.
(b) No person is liable for any obligation arising from membership unless the person was admitted to membership upon the person’s application or with the person’s consent.
(c) The ownership of an interest in real property, when a condition of its ownership is membership in a corporation, shall be considered consent to such membership for the purpose of this section.
Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.