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HomeCorporations CodeCh. 4Art. 1§ 7414 Membership Purchase Restrictions

§ 7414 Membership Purchase Restrictions

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

§ 7414 Membership Purchase Restrictions

Key Takeaways

  • •A company can add extra rules about buying or selling memberships.
  • •These extra rules can be in the company's official papers or in special agreements.
  • •The law doesn't stop companies from making these extra rules.

Example

You want to join a gym that has special rules about memberships.

The gym can have extra rules, like you can't sell your membership to someone else, even if the law doesn't say that. These rules are allowed if they're written in the gym's official papers.

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

Official Source
View on CA.gov

§ 7414 Membership Purchase Restrictions

Nothing in this chapter prohibits additional restrictions upon the purchase or redemption of a membership by provision in a corporation’s articles or bylaws or agreement entered into by the corporation. (Added by Stats. 1978, Ch. 567.)

Last verified: January 23, 2026

Key Terms

purchase or redemption of a membershipadditional restrictionscorporation’s articles or bylaws

Related Statutes

  • § 12454 Additional Restrictions Permitted
  • § 12450 Corporate Dissolution Exemption
  • § 12451 Annual Distribution Limit
  • § 12452 Membership Purchase And Redemption
  • § 12453 Corporate Financial Solvency Restrictions

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 7414.
View Official Source