§ 12400 Membership Issuance Consideration Rules

Corporations Code·California

AI SummaryVerified

This law lets a corporation give out memberships without charging money or by charging a price that its board decides, as long as it follows the corporation's own rules.

Key Takeaways

•Corporations can issue memberships.
•Memberships can be free or require a fee set by the board.
•The issuance must follow the corporation's articles or bylaws.

Example

A local club corporation wants to add new members. It can let them join for free or ask the board to set a membership fee.

The board decides the fee amount, and the corporation can issue the membership based on that decision, following the club's articles or bylaws.

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

Official Source

View on CA.gov

§ 12400 Membership Issuance Consideration Rules

Subject to the articles or bylaws, memberships may be issued by a corporation for no consideration or for such consideration as is determined by the board. (Repealed and added by Stats. 1982, Ch. 1625, Sec. 3. Operative January 1, 1984.)

Last verified: January 10, 2026

Key Terms

memberships consideration board articles or bylaws

References

Official text at leginfo.legislature.ca.gov
California Legislature. Corporations Code. Section 12400.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References