California Corporations Code

§ 7313

CORP § 7313Div. 2 · Title 1 · Part 3 · Ch. 3 · Art. 1

Statute text

(a)A corporation may, but is not required to, issue membership certificates. 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)Membership certificates issued by corporations shall state the following on the certificate:

(1)The corporation is a nonprofit mutual benefit corporation which may not make distributions to its members except upon dissolution, or, if the articles or bylaws so provide, that it may not make distributions to its members during its life or upon dissolution.

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Legislative history

Amended by Stats. 1985, Ch. 378, Sec. 4.