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HomeCorporations CodeCh. 1Art. 6§ 12331 Director Number Requirements

§ 12331 Director Number Requirements

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

§ 12331 Director Number Requirements

This law tells nonprofit corporations how they must write and change their bylaws, especially rules about how many directors they can have and how many member votes are needed to make those changes.

Key Takeaways

  • •The board must have at least three directors; you cannot go below that.
  • •Changing the number of directors or the maximum/minimum number of directors can only be done with a special higher‑level vote of the members.
  • •Emergency bylaws can be used in crises, but they cannot change anything that requires a member vote unless that vote was already obtained.

Example

A small nonprofit wants to increase its board from 5 directors to 7 directors.

Because the current bylaws set a maximum of 5 directors, the nonprofit must get a higher‑than‑usual vote from its members to change that number. The law says any change that raises the number of directors needs the approval of a larger proportion of members than usual, and that vote can only be changed again by the same larger vote.

How to Calculate

RequiredVotes = TotalMembers × RequiredProportion

  1. Count how many members the corporation has (TotalMembers).
  2. Determine the proportion the bylaws require for the vote (RequiredProportion).
  3. Multiply the two numbers to get the number of votes needed (RequiredVotes).

The nonprofit has 300 members and its bylaws now require a two‑thirds (2/3) vote to amend the director count.

Result: RequiredVotes = 300 × (2/3) = 200 votes

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

Official Source
View on CA.gov

§ 12331 Director Number Requirements

(a) The bylaws shall set forth (unless such provision is contained in the articles, in which case it may only be changed by an amendment of the articles) the number of directors of the corporation, or the method of determining the number of directors of the corporation, or that the number of directors shall be not less than a stated minimum or more than a stated maximum with the exact number of directors to be fixed, within the limits specified, by approval of the board or the members (Sections 12222 and 12224), in the manner provided in the bylaws, subject to subdivision (e). The number or minimum number of directors shall not be less than three. Alternate directors may be permitted, in which event, the bylaws shall specify the manner and times of their election and the conditions to their service in place of a director. (b) Once members have been admitted, a bylaw specifying or changing a fixed number of directors or the maximum or minimum number or changing from a fixed to a variable board or vice versa may only be adopted by approval of the members. (c) The bylaws may contain any provision, not in conflict with law or the articles, for the management of the activities and for the conduct of the affairs of the corporation, including, but not limited to: (1) Any provision referred to in subdivision (c) of Section 12313. (2) The time, place, and manner of calling, conducting, and giving notice of members’, directors’, and committee meetings, or of conducting mail ballots. (3) The qualifications, duties, and compensation of directors; the time of their election; and the requirements of a quorum for directors’ and committee meetings. (4) The appointment of committees, composed of directors or nondirectors or both, by the board or any officer and the authority of these committees. (5) The appointment, duties, compensation, and tenure of officers. (6) The mode of determination of members of record. (7) The making of reports and financial statements to members. (8) Setting, imposing, and collecting dues, assessments, and membership and transfer fees. (9) The time and manner of patronage distributions consistent with this part. (d) The bylaws may provide for eligibility, the manner of admission, withdrawal, suspension, and expulsion of members, and the suspension or termination of memberships consistent with the requirements of Section 12431. (e) The bylaws may require, for any or all corporate actions, the vote of a larger proportion of, or all of, the members or the members of any class, unit, or grouping of members or the vote of a larger proportion of, or all of, the directors, than is otherwise required by this part. A provision in the bylaws requiring a greater vote shall not be altered, amended, or repealed except by the greater vote, unless otherwise provided in the bylaws. (f) The bylaws may contain a provision limiting the number of members, in total or of any class or series, which the corporation is authorized to admit. (g) The bylaws may provide for the establishment by the corporation of a program for the education of its members, officers, employees, and the general public in the principles and techniques of cooperation. (h) (1) The bylaws may contain any provision, not in conflict with the articles, to manage and conduct the business affairs of the corporation effective only in an emergency as defined in Section 12320, including, but not limited to, procedures for calling a board meeting, quorum requirements for a board meeting, and designation of additional or substitute directors. (2) During an emergency, the board may take any action that it determines to be necessary or appropriate to respond to the emergency, mitigate the effects of the emergency, or comply with lawful federal and state government orders, but shall not take any action that requires the vote of the members, unless the required vote of the members was obtained prior to the emergency. (3) All provisions of the regular bylaws consistent with the emergency bylaws shall remain effective during the emergency, and the emergency bylaws shall not be effective after the emergency ends. (4) Corporate action taken in good faith in accordance with the emergency bylaws binds the corporation, and shall not be used to impose liability on a corporate director, officer, employee, or agent. (Amended by Stats. 2021, Ch. 523, Sec. 20. (AB 663) Effective January 1, 2022.)

Last verified: January 10, 2026

Key Terms

corporationterminationportdirectorelectionthe bylawscompensationappointment

Related Statutes

  • § 7151 Director Number Requirements
  • § 9151 Director Number Requirements
  • § 1502.1 Auditor Disclosure Requirements
  • § 7522 Corporate Director Election Rules
  • § 12313 Optional Corporate Articles Provisions

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 12331.
View Official Source