§ 12476 Corporate Funds Election Limits

Corporations Code·California

AI SummaryVerified

This law says a company can't spend its money to support someone running for a director position if there are more people running than there are spots available, unless the board says it's okay.

Key Takeaways

•A company can't spend money to support someone for director if there are more candidates than open spots.
•The board must give permission first before any money can be spent.
•This rule helps keep things fair when too many people want to be directors.

Example

Imagine a company has 3 open spots for directors, but 5 people want to be directors.

The company can't use its money to help any of those 5 people get elected unless the board gives permission first.

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

Official Source

View on CA.gov

§ 12476 Corporate Funds Election Limits

Without authorization of the board, no corporation funds may be expended to support a nominee for director after there are more people nominated for director than can be elected. (Added by Stats. 1982, Ch. 1625, Sec. 3. Operative January 1, 1984.)

Last verified: January 10, 2026

Key Terms

corporation funds nominee for director board authorization

References

Official text at leginfo.legislature.ca.gov
California Legislature. Corporations Code. Section 12476.

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Key Takeaways

Example

Key Terms

Related Statutes

References