The bylaws may prescribe the amount of any dividends that may be declared on the stock or membership capital. To the extent that dividends are payable out of the excess of association income over association expenses attributable to business transacted with or for members, dividends shall not exceed 8 percent per annum. Dividends are in the nature of interest, and do not affect the nonprofit character of any association that is organized pursuant to this chapter.
Cal. Food & Agric. Code § 54120
Bylaws
Applied in 1 court decision — leading case People ex rel. City of Dana Point v. Holistic Health (2013)
Most recently applied in People ex rel. City of Dana Point v. Holistic Health (February 2013)
Amended by Stats. 1997, Ch. 46, Sec. 1
Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.