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HomeCorporations CodeCh. 3Art. 2§ 7320 Membership Transfer Restrictions

§ 7320 Membership Transfer Restrictions

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

§ 7320 Membership Transfer Restrictions

Key Takeaways

  • •You can't give away or sell your membership in this group unless the group's rules say you can.
  • •If you die or the group breaks up, your membership usually ends unless the rules say otherwise.
  • •The group's rules can let you pass your membership to someone else, even after you die or if the group changes.
  • •If the rules change to stop you from transferring your membership, it doesn’t apply to you if you got your membership before the change—unless you agreed to it.

Example

You join a local club that has special rules about memberships.

If the club’s rules don’t say anything about giving away your membership, you can’t sell it or give it to someone else. If you die, your membership ends, and your family can’t take over unless the club’s rules allow it. But if the club’s rules say you can pass your membership to your kid, then your kid can take over after you die.

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

Official Source
View on CA.gov

§ 7320 Membership Transfer Restrictions

Subject to Section 7613: (a) Unless the articles or bylaws otherwise provide: (1) No member may transfer a membership or any right arising therefrom; and (2) Subject to the provisions of subdivision (b), all rights as a member of the corporation cease upon the member’s death or dissolution. (b) The articles or bylaws may provide for, or may authorize the board to provide for, the transfer of memberships, or of memberships within any class or classes, with or without restriction or limitation, including transfer upon the death, dissolution, merger, or reorganization of a member. (c) Where transfer rights have been provided, no restriction of them shall be binding with respect to memberships issued prior to the adoption of the restriction, unless the holders of such memberships voted in favor of the restriction. (Added by Stats. 1978, Ch. 567.)

Last verified: January 23, 2026

Key Terms

transfer of membershipsrights as a memberarticles or bylawsrestriction of transfer rights

Related Statutes

  • § 12410 Membership Transfer And Termination
  • § 9320 Membership Transfer Restrictions
  • § 12400 Membership Issuance Consideration Rules
  • § 12403 Corporate Membership Admission Rules
  • § 12422 Membership Redemption Provisions

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 7320.
View Official Source