California Code
DIVISION 3 - CORPORATIONS FOR SPECIFIC PURPOSES
PART 2 - COOPERATIVE CORPORATIONS

CHAPTER 1 - General Provisions, Organization and Bylaws

ARTICLE 1 - Title, Purposes and Application of Part

Section 12200. - 12200. This part shall be known as the Cooperative Corporation...

Section 12201. - 12201. Subject to any other provision of law of this...

Section 12201.5. - 12201.5. (a) Notwithstanding Section 12201, the net earnings and losses...

Section 12202. - 12202. (a) The provisions of this part apply to corporations...

Section 12203. - 12203. Unless the provisions or the context otherwise requires, the...

ARTICLE 2 - General Provisions and Definitions

Section 12210. - 12210. A corporation may be sued as provided in the...

Section 12211. - 12211. Any corporation shall, as a condition of its existence...

Section 12212. - 12212. The fees of the Secretary of State for filing...

Section 12213. - 12213. Any agreement, certificate, or other instrument filed pursuant to...

Section 12214. - 12214. (a) Upon receipt of any instrument by the Secretary...

Section 12214.5. - 12214.5. The Secretary of State may cancel the filing of...

Section 12214.6. - 12214.6. (a) A corporation that (1) fails to file a...

Section 12215. - 12215. Except as otherwise permitted, any reference in this part...

Section 12216. - 12216. If the articles provide for more than one vote...

Section 12217. - 12217. All references in this part to financial statements of...

Section 12218. - 12218. As used in this part, “independent accountant” means a...

Section 12219. - 12219. Any reference in this part to the time a...

Section 12220. - 12220. A notice or report mailed or delivered as part...

Section 12221. - 12221. “Acknowledged” means that an instrument is either: (a) Formally...

Section 12222. - 12222. “Approved by (or approval of) the board” means approved...

Section 12223. - 12223. “Approval by (or approval of) a majority of all...

Section 12224. - 12224. “Approval by (or approval of) the members” means approved...

Section 12225. - 12225. “Articles” includes the articles of incorporation, amendments thereto, amended...

Section 12226. - 12226. “Bylaws” includes amendments thereto and amended bylaws. (Added by...

Section 12227. - 12227. “Board” means the board of directors of the corporation....

Section 12228. - 12228. “Business corporation” means a corporation as defined in Section...

Section 12228.3. - 12228.3. “Capital account cooperative” is a worker cooperative in which...

Section 12228.5. - 12228.5. For the purposes of this part, all references to...

Section 12229. - 12229. “Chapter” refers to a chapter of this part unless...

Section 12230. - 12230. “Class” refers to those memberships which: (a) are identified...

Section 12230.5. - 12230.5. “Collective board worker cooperative” means a worker cooperative in...

Section 12231. - 12231. “Constituent corporation” means a corporation which is merged with...

Section 12232. - 12232. “Corporation” as used in this part means a corporation...

Section 12233. - 12233. “Directors” means natural persons, designated in the articles or...

Section 12234. - 12234. “Disappearing corporation” means a constituent corporation which is not...

Section 12235. - 12235. “Distribution” means the distribution of any gains, profits or...

Section 12236. - 12236. “Domestic corporation” means a corporation formed under the laws...

Section 12237. - 12237. “Foreign corporation” means a foreign corporation as defined in...

Section 12238. - 12238. (a) “Member” means any person who, pursuant to a...

Section 12239. - 12239. A “membership” refers to the rights a member has...

Section 12240. - 12240. “Membership certificate,” as used in this part, means a...

Section 12241. - 12241. “Officers’ certificate” means a certificate signed and verified by...

Section 12242. - 12242. “On the certificate,” as used in this part means...

Section 12242.5. - 12242.5. “Other business entity” means a domestic or foreign limited...

Section 12242.6. - 12242.6. “Parent party” means the corporation in control of any...

Section 12243. - 12243. (a) (1) If the corporation is organized to provide...

Section 12244. - 12244. “Patronage distribution” means any transfer made to a patron...

Section 12245. - 12245. “Person,” unless otherwise expressly provided, includes any association, company,...

Section 12245.2. - 12245.2. “Preferred memberships” means memberships that have a preference over...

Section 12246. - 12246. “Proper county” means the county where the corporation’s principal...

Section 12246.2. - 12246.2. “Series” of memberships means memberships within a class of...

Section 12247. - 12247. “Shareholder” shall have the same meaning as “member” as...

Section 12248. - 12248. “Share certificate” shall have the same meaning as “membership...

Section 12249. - 12249. “Surviving corporation” means a corporation into which one or...

Section 12250. - 12250. “Vacancy” when used with respect to the board means...

Section 12251. - 12251. “Verified” means that the statements contained in a certificate...

Section 12252. - 12252. “Vote” includes, but is not limited to, authorization by...

Section 12253. - 12253. (a) “Voting power” means the power to vote for...

Section 12253.5. - 12253.5. “Worker cooperative” or “employment cooperative” means a corporation formed...

Section 12254. - 12254. “Written” or “in writing” includes facsimile, telegraphic, and other...

Section 12255. - 12255. “Written ballot” does not include a ballot distributed at...

Section 12256. - 12256. A central organization is a corporation whose membership is...

ARTICLE 3 - Formation

Section 12300. - 12300. (a) One or more persons may form a corporation...

Section 12301. - 12301. (a) In the case of an existing unincorporated association,...

Section 12302. - 12302. (a) The Secretary of State shall not file articles...

Section 12302.1. - 12302.1. The Secretary of State shall not file articles for...

ARTICLE 4 - Articles of Incorporation

Section 12310. - 12310. The articles of incorporation of a corporation formed under...

Section 12310.5. - 12310.5. (a) A corporation organized under this part may elect...

Section 12311. - 12311. (a) The names of all corporations formed under this...

Section 12312. - 12312. The articles of incorporation may set forth a further...

Section 12313. - 12313. (a) The articles of incorporation may set forth any...

Section 12314. - 12314. The articles of incorporation of a central organization, as...

Section 12315. - 12315. For all purposes other than an action in the...

Section 12316. - 12316. If initial directors have not been named in the...

Section 12317. - 12317. (a) A worker cooperative may, in its articles or...

ARTICLE 5 - Powers

Section 12320. - 12320. Subject to any limitations contained in the articles or...

Section 12321. - 12321. (a) No limitation upon the activities, purposes, or powers...

ARTICLE 6 - Bylaws

Section 12330. - 12330. (a) Except as provided in subdivision (c) and Sections...

Section 12331. - 12331. (a) The bylaws shall set forth (unless such provision...

Section 12332. - 12332. A corporation may provide in its bylaws for delegates...

Section 12333. - 12333. A corporation may provide in its bylaws for voting...

ARTICLE 7 - Location and Inspection of Articles and Bylaws

Section 12340. - 12340. Every corporation shall keep at its principal office in...

CHAPTER 2 - Directors and Management

ARTICLE 1 - General Provisions

Section 12350. - 12350. Each corporation shall have a board of directors. Subject...

Section 12351. - 12351. (a) Unless otherwise provided in the articles or in...

Section 12352. - 12352. (a) The board may, by resolution adopted by a...

Section 12353. - 12353. (a) A corporation shall have (1) a chair of...

Section 12354. - 12354. Subject to the provisions of subdivision (a) of Section...

Section 12355. - 12355. The original or a copy in writing or in...

ARTICLE 2 - Selection, Removal and Resignation of Directors

Section 12360. - 12360. (a) Except as provided in subdivision (d), directors shall...

Section 12361. - 12361. The board may declare vacant the office of a...

Section 12362. - 12362. (a) Subject to subdivisions (b), (c) and (g), any...

Section 12363. - 12363. The superior court of the proper county may, at...

Section 12364. - 12364. (a) Unless otherwise provided in the articles or bylaws...

ARTICLE 3 - Standards of Conduct

Section 12370. - 12370. Any duties and liabilities set forth in this article...

Section 12371. - 12371. (a) A director shall perform the duties of a...

Section 12372. - 12372. (a) Section 12371 governs the duties of directors as...

Section 12373. - 12373. (a) No contract or other transaction between a corporation...

Section 12374. - 12374. Interested or common directors may be counted in determining...

Section 12375. - 12375. (a) Unless prohibited by the articles or bylaws, a...

Section 12376. - 12376. (a) Subject to the provisions of Section 12371, directors...

Section 12377. - 12377. (a) For the purposes of this section, “agent” means...

CHAPTER 3 - Members

ARTICLE 1 - Issuance of Memberships

Section 12400. - 12400. Subject to the articles or bylaws, memberships may be...

Section 12401. - 12401. (a) A corporation may issue, but is not required...

Section 12402. - 12402. (a) A corporation may issue a new membership certificate...

Section 12403. - 12403. (a) Except as provided in subdivision (b), or in...

Section 12404. - 12404. Except as permitted in Sections 12314 and 12404.5, the...

Section 12404.5. - 12404.5. (a) The worker-members of a worker cooperative shall have...

Section 12405. - 12405. There shall be no voting by proxy. (Amended by...

ARTICLE 2 - Transfer of Memberships

Section 12410. - 12410. (a) Unless the articles or bylaws otherwise provide: (1)...

ARTICLE 3 - Types of Memberships

Section 12420. - 12420. (a) Except as provided in subdivision (b), a corporation...

Section 12421. - 12421. Except as provided in the articles or bylaws, all...

Section 12422. - 12422. (a) Unless the corporation’s articles or bylaws so provide,...

ARTICLE 4 - Termination of Memberships

Section 12430. - 12430. (a) A member may resign from membership at any...

Section 12431. - 12431. (a) No member may be expelled or suspended, and...

ARTICLE 5 - Rights and Obligations of Members and Creditors

Section 12440. - 12440. (a) A member of a corporation is not, as...

Section 12441. - 12441. A corporation may levy dues, assessments, or fees upon...

Section 12442. - 12442. A person holding a membership as pledgee or a...

Section 12443. - 12443. (a) No action shall be brought by or on...

Section 12444. - 12444. Nothing in this part shall be construed as in...

Section 12445. - 12445. The articles or bylaws shall prescribe: (a) The manner...

Section 12446. - 12446. (a) Subject to subdivision (b), Chapter 7 (commencing with...

CHAPTER 4 - Distributions

ARTICLE 1 - Limitations

Section 12450. - 12450. This chapter does not apply to any proceeding for...

Section 12451. - 12451. Distributions (Section 12235) in any fiscal year shall not...

Section 12452. - 12452. A corporation may, subject to meeting the requirements of...

Section 12453. - 12453. Neither a corporation nor any of its subsidiaries shall...

Section 12454. - 12454. Nothing in this chapter prohibits additional restrictions upon the...

Section 12454.5. - 12454.5. (a) A worker cooperative may create an indivisible reserves...

ARTICLE 2 - Liability of Members

Section 12455. - 12455. (a) Any person who with knowledge of facts indicating...

CHAPTER 5 - Meetings and Voting

ARTICLE 1 - General Provisions

Section 12460. - 12460. (a) Meetings of members may be held at a...

Section 12460.5. - 12460.5. Notwithstanding Section 12460, a collective board worker cooperative shall...

Section 12461. - 12461. (a) Whenever members are required or permitted to take...

Section 12462. - 12462. (a) The lesser of 250 members or members representing...

Section 12463. - 12463. (a) Subject to subdivision (e), and unless prohibited in...

Section 12464. - 12464. (a) Any form of written ballot distributed to 10...

Section 12465. - 12465. (a) If for any reason it is impractical or...

Section 12466. - 12466. (a) If the name signed on a ballot, consent...

ARTICLE 2 - Additional Provisions Relating to Election of Directors

Section 12470. - 12470. As to directors elected by members, there shall be...

Section 12473. - 12473. Where a corporation distributes any material soliciting a vote...

Section 12474. - 12474. Upon written request by any nominee for election to...

Section 12475. - 12475. (a) Except as provided in subdivision (c), no corporation...

Section 12476. - 12476. Without authorization of the board, no corporation funds may...

Section 12477. - 12477. An action challenging the validity of any election, appointment...

CHAPTER 6 - Voting of Memberships

Section 12480. - 12480. Except as provided in Sections 12314 and 12484, each...

Section 12481. - 12481. (a) The bylaws may provide or, in the absence...

Section 12482. - 12482. Unless otherwise provided in the articles or bylaws, if...

Section 12483. - 12483. (a) In advance of any meeting of members the...

Section 12484. - 12484. (a) Except in the case of a central organization,...

Section 12485. - 12485. (a) Upon the filing of an action therefor by...

CHAPTER 7 - Members Derivative Actions

Section 12490. - 12490. (a) Subdivisions (c) through (f) notwithstanding, no motion to...

CHAPTER 8 - Amendment of Articles

Section 12500. - 12500. (a) By complying with the provisions of this chapter,...

Section 12501. - 12501. Any amendment of the articles may be adopted by...

Section 12502. - 12502. (a) Except as provided in this section or Section...

Section 12503. - 12503. (a) An amendment shall also be approved by the...

Section 12504. - 12504. (a) A corporation may amend its articles to change...

Section 12505. - 12505. (a) Upon adoption of an amendment, the corporation shall...

Section 12506. - 12506. In the case of amendments adopted by the incorporators...

Section 12507. - 12507. The certificate of amendment shall establish the wording of...

Section 12508. - 12508. Upon the filing of the certificate of amendment, the...

Section 12509. - 12509. A corporation formed for a limited period may at...

Section 12510. - 12510. (a) A corporation may restate in a single certificate...

CHAPTER 9 - Sales of Assets

Section 12520. - 12520. Any mortgage, deed of trust, pledge or other hypothecation...

Section 12521. - 12521. (a) A corporation may sell, lease, convey, exchange, transfer...

Section 12522. - 12522. Any deed or instrument conveying or otherwise transferring any...

CHAPTER 10 - Mergers

ARTICLE 1 - Merger

Section 12530. - 12530. Except as provided in Section 12530.5, any corporation may...

Section 12530.5. - 12530.5. Notwithstanding Section 12530, a worker cooperative that has not...

Section 12531. - 12531. The board of each corporation that desires to merge...

Section 12532. - 12532. Each membership of the same class of any constituent...

Section 12533. - 12533. (a) The principal terms of the merger shall be...

Section 12534. - 12534. Each constituent corporation shall sign the agreement by the...

Section 12535. - 12535. After approval of a merger by the board and...

Section 12536. - 12536. (a) Any amendment to the agreement may be adopted...

Section 12537. - 12537. The board may, in its discretion, abandon a merger,...

Section 12538. - 12538. A copy of an agreement of merger certified on...

Section 12539. - 12539. (a) Subject to the provisions of Section 12530, the...

Section 12540. - 12540. If an agreement of merger is entered into between...

Section 12540.1. - 12540.1. (a) Any one or more corporations may merge with...

ARTICLE 2 - Effect of Merger

Section 12550. - 12550. (a) Upon merger pursuant to this chapter the separate...

Section 12550.5. - 12550.5. (a) Upon merger pursuant to this chapter, a surviving...

Section 12551. - 12551. Whenever a domestic or foreign corporation or other business...

Section 12552. - 12552. Any bequest, devise, gift, grant, or promise contained in...

CHAPTER 11 - Bankruptcy Reorganizations and Arrangements

Section 12560. - 12560. Any proceeding, initiated with respect to a corporation, under...

CHAPTER 12 - Required Filings by Corporation or Its Agent

Section 12570. - 12570. (a) Every corporation shall, within 90 days after the...

Section 12571. - 12571. (a) An agent designated for service of process pursuant...

Section 12572. - 12572. If a natural person who has been designated agent...

Section 12574. - 12574. Upon request of an assessor, a corporation owning, claiming,...

Section 12575. - 12575. Any officers, directors, employees or agents of a corporation...

Section 12576. - 12576. The Attorney General, upon complaint of a member, director,...

CHAPTER 13 - Records, Reports and Rights of Inspection

ARTICLE 1 - General Provisions

Section 12580. - 12580. If any record subject to inspection pursuant to this...

Section 12581. - 12581. Any inspection under this chapter may be made in...

Section 12582. - 12582. Any right of inspection created by this chapter extends...

Section 12583. - 12583. The rights of members provided in this chapter may...

ARTICLE 2 - Required Records, Reports to Directors and Members

Section 12590. - 12590. (a) Each corporation shall keep: (1) Adequate and correct...

Section 12591. - 12591. (a) A corporation shall notify each member yearly of...

Section 12592. - 12592. (a) Any provision of the articles or bylaws notwithstanding,...

Section 12593. - 12593. (a) The superior court of the proper county shall...

Section 12594. - 12594. For a period of 60 days following the conclusion...

ARTICLE 3 - Rights of Inspection

Section 12600. - 12600. (a) Subject to Sections 12601 and 12602 and unless...

Section 12601. - 12601. (a) Where the corporation, in good faith, and with...

Section 12602. - 12602. (a) Upon petition of the corporation or any member,...

Section 12603. - 12603. The accounting books and records and minutes of proceedings...

Section 12604. - 12604. Every director shall have the absolute right at any...

Section 12605. - 12605. Where the proper purpose of the person or persons...

Section 12606. - 12606. (a) Upon refusal of a lawful demand for inspection...

Section 12607. - 12607. In any action or proceeding under this article, and...

Section 12608. - 12608. (a) A membership list is a corporate asset. Without...

CHAPTER 14 - Service of Process

Section 12610. - 12610. Service of process upon a corporation shall be governed...

CHAPTER 15 - Involuntary Dissolution

Section 12620. - 12620. (a) A complaint for involuntary dissolution of a corporation...

Section 12621. - 12621. (a) The Attorney General may bring an action against...

Section 12622. - 12622. If the ground for the complaint for involuntary dissolution...

Section 12623. - 12623. If, at the time of the filing of a...

Section 12624. - 12624. After hearing the court may decree a winding up...

Section 12625. - 12625. (a) Involuntary proceedings for winding up a corporation commence...

Section 12626. - 12626. When an involuntary proceeding for winding up has been...

Section 12627. - 12627. (a) All creditors and claimants may be barred from...

Section 12628. - 12628. (a) Upon the final settlement of the accounts of...

Section 12629. - 12629. Whenever a corporation is dissolved or its existence forfeited...

CHAPTER 16 - Voluntary Dissolution

Section 12630. - 12630. (a) Any corporation may elect voluntarily to wind up...

Section 12631. - 12631. (a) Whenever a corporation has elected to wind up...

Section 12632. - 12632. (a) A voluntary election to wind up and dissolve...

Section 12633. - 12633. (a) Voluntary proceedings for winding up the corporation commence...

Section 12634. - 12634. If a corporation is in the process of voluntary...

Section 12635. - 12635. (a) When a corporation has been completely wound up...

Section 12636. - 12636. Except as otherwise provided by law, if the term...

Section 12637. - 12637. (a) The board, in lieu of filing the certificate...

Section 12638. - 12638. (a) A corporation in the process of winding up...

CHAPTER 17 - General Provisions Relating to Dissolution

Section 12650. - 12650. The powers and duties of the directors (or other...

Section 12651. - 12651. A vacancy on the board may be filled during...

Section 12652. - 12652. When the identity of the directors or their right...

Section 12653. - 12653. (a) After determining that all the known debts and...

Section 12654. - 12654. The payment of a debt or liability, whether the...

Section 12655. - 12655. After complying with the provisions of Section 12653 assets...

Section 12656. - 12656. After complying with the provisions of Section 12653 and...

Section 12656.5. - 12656.5. (a) After complying with the provisions of Section 12653,...

Section 12657. - 12657. Distribution may be made either in money or in...

Section 12658. - 12658. (a) If a corporation in process of winding up...

Section 12659. - 12659. (a) If any members, creditors, or other persons are...

Section 12660. - 12660. (a) Whenever in the process of winding up a...

Section 12661. - 12661. (a) A corporation which is dissolved nevertheless continues to...

Section 12662. - 12662. (a) (1) Causes of action against a dissolved corporation,...

Section 12663. - 12663. Without the approval of 100 percent of the members,...

CHAPTER 18 - Crimes and Penalties

Section 12670. - 12670. (a) Upon the failure of a corporation to file...

Section 12671. - 12671. Any promoter, director, or officer of a corporation who...

Section 12672. - 12672. Any director of any corporation who concurs in any...

Section 12673. - 12673. (a) Every director or officer of any corporation is...

Section 12674. - 12674. (a) Every director, officer or agent of any corporation,...

Section 12675. - 12675. Every director, officer or agent of any corporation, or...

Section 12676. - 12676. Every person who, without being authorized so to do,...

Section 12677. - 12677. Nothing in this chapter limits the power of the...

Section 12678. - 12678. Any person may be enjoined from violating the provisions...

Section 12679. - 12679. Any person violating Section 12311, and any corporation carrying...

CHAPTER 19 - Foreign Corporations

Section 12680. - 12680. Foreign corporations transacting intrastate business shall comply with Chapter...

CHAPTER 20 - Transition Provisions

Section 12690. - 12690. As used in Sections 12690 to 12704, inclusive, of...

Section 12691. - 12691. (a) The new law shall apply to all corporations...

Section 12692. - 12692. (a) The provisions of Sections 12310 and 12313 of...

Section 12693. - 12693. Section 12320 of the new law shall apply to...

Section 12694. - 12694. Subdivision (a) of Section 12353 of the new law...

Section 12695. - 12695. Section 12377 governs any proposed indemnification by a subject...

Section 12696. - 12696. (a) The provisions of Chapter 5 (commencing with Section...

Section 12697. - 12697. Section 12490 of the new law shall apply to...

Section 12698. - 12698. Chapter 9 (commencing with Section 12520) and Chapter 10...

Section 12699. - 12699. Chapter 15 (commencing with Section 12620) and Chapter 17...

Section 12700. - 12700. Chapter 16 (commencing with Section 12630) and Chapter 17...

Section 12701. - 12701. When any corporate agent has been designated for service...

Section 12702. - 12702. Any subject corporation that existed on the first day...

Section 12704. - 12704. If the corporate rights, privileges, and powers of a...