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HomeCorporations Code§ 5041 Membership Class Definitions

§ 5041 Membership Class Definitions

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

§ 5041 Membership Class Definitions

Key Takeaways

  • •A 'class' of membership means a group of members that are either named differently in the rules or have the same rights.
  • •Rights are the same if they are decided by a formula that is applied the same way to everyone.
  • •This helps figure out who gets to vote, what happens if the group ends, and how memberships can be sold or given away.

Example

Imagine a club where some members are called 'Gold Members' and others are 'Silver Members'.

If Gold Members and Silver Members have the same rights, like voting or getting money back if the club closes, then they are in the same class. If their rights are different, they are in different classes.

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

Official Source
View on CA.gov

§ 5041 Membership Class Definitions

“Class” refers to those memberships which: (a) are identified in the articles or bylaws as being a different type of membership; or (b) have the same rights with respect to voting, dissolution, redemption and transfer. For the purpose of this section, rights shall be considered the same if they are determined by a formula applied uniformly. (Repealed and added by Stats. 1979, Ch. 724.)

Last verified: January 23, 2026

Key Terms

Classmembershipsvotingdissolutionredemptiontransfer

Related Statutes

  • § 12230 Membership Class Definitions
  • § 12330 Board Bylaw Amendment Limits
  • § 12410 Membership Transfer And Termination
  • § 1155 Corporation Conversion Requirements
  • § 12246.2 Membership Series Classification Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 5041.
View Official Source