California Corporations Code

§ 12401

CORP § 12401Div. 3 · Title 1 · Part 2 · Ch. 3 · Art. 1

Statute text

(a)A corporation may issue, but is not required to issue, membership certificates. In the event that membership certificates are issued, the certificates shall state the information required to be contained in the disclosure document described in subdivision (b). Nothing in this section shall restrict a corporation from issuing identity cards or similar devices to members which serve to identify members qualifying to use facilities or services of the corporation.

(b)Except as provided in subdivision (e), prior to issuing a membership, the corporation shall provide the purchaser of a membership with a disclosure document. The disclosure document may be a prospectus, offering circular, brochure, or similar document, a specimen copy of the membership certificate, or a receipt which the corporation proposes to issue. The disclosure document shall contain the following information:

(1)A statement that the corporation is a cooperative corporation.

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Legislative history

Amended by Stats. 1983, Ch. 792, Sec. 19.