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HomeCorporations CodeCh. 1Art. 6§ 12330 Board Bylaw Amendment Limits

§ 12330 Board Bylaw Amendment Limits

Corporations Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 12330 Board Bylaw Amendment Limits

This law tells who can change the rules (bylaws) of a corporation and what kinds of changes need approval from members or special groups.

Key Takeaways

  • •The board can change bylaws unless the change hurts members' rights, changes the number of members, swaps memberships, or creates a new class.
  • •If a change does any of those things, the members (or the specific class/series affected) must vote to approve it.
  • •The corporation’s articles or bylaws can limit the board’s power, and special approval rules can be added, but they can be bypassed in certain situations (like death of the approver or missed notice deadlines).

Example

A housing cooperative's board wants to add a new class of members that gets extra voting power.

Because the change creates a new class of membership, the board cannot do it alone; the members (or the affected class) must approve the change first.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 12330 Board Bylaw Amendment Limits

(a) Except as provided in subdivision (c) and Sections 12331, 12360, 12364, 12462, and 12484, bylaws may be adopted, amended, or repealed by the board unless the action would do any of the following: (1) Materially and adversely affect the rights or obligations of members as to voting, dissolution, redemption, transfer, distributions, patronage distributions, patronage, property rights, or rights to repayment of contributed capital. (2) Increase or decrease the number or members authorized in total or for any class. (3) Effect an exchange, reclassification or cancellation of all or part of the memberships. (4) Authorize a new class of membership. (b) Bylaws may be adopted, amended or repealed by approval of the members (Section 12224); provided, however, that adoption, amendment, or repeal also requires approval by the members of a class or series if that action would do any of the following: (1) Materially and adversely affect the rights or obligations of that class or series as to voting, dissolution, redemption, transfer, distributions, patronage distributions, patronage, property rights, or rights to repayment of contributed capital, in a manner different than such action affects another class or another series within the same class. (2) Materially and adversely affect such class or series as to voting, dissolution, redemption, transfer, distributions, patronage distributions, patronage, property rights, or rights to repayment of contributed capital, by changing the rights, privileges, preferences, restrictions or conditions of another class or another series within the same class. (3) Increase or decrease the number of memberships authorized for the class. (4) Increase the number of memberships authorized for another class. (5) Effect an exchange, reclassification or cancellation of all or part of the memberships of the class or series. (6) Authorize a new class of memberships. (c) The articles or bylaws may restrict or eliminate the power of the board to adopt, amend or repeal any or all bylaws, subject to subdivision (e) of Section 12331. (d) Bylaws may also provide that repeal or amendment of those bylaws, or the repeal or amendment of specified portions of those bylaws, may occur only with the approval in writing of a specified person or persons other than the board or members. However, this approval requirement, unless the articles or the bylaws specify otherwise, shall not apply if any of the following circumstances exist: (1) The specified person or persons have died or ceased to exist. (2) If the right of the specified person or persons to approve is in the capacity of an officer, trustee, or other status and the office, trust, or status has ceased to exist. (3) If the corporation has a specific proposal for amendment or repeal, and the corporation has provided written notice of that proposal, including a copy of the proposal, to the specified person or persons at the most recent address for each of them, based on the corporation’s records, and the corporation has not received written approval or nonapproval within the period specified in the notice, which shall not be less than 10 nor more than 30 days commencing at least 20 days after the notice has been provided. (Amended by Stats. 2013, Ch. 538, Sec. 4. (AB 1255) Effective January 1, 2014.)

Last verified: January 10, 2026

Key Terms

bylawsmaterially and adversely affectrights or obligations of membersvotingdissolutionredemptiontransferdist

Related Statutes

  • § 12230 Membership Class Definitions
  • § 12333 Voting By Chapter Or Region
  • § 5041 Membership Class Definitions
  • § 12332 Delegates Authority And Election
  • § 5150 Bylaw Adoption And Amendment

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 12330.
View Official Source