§ 54236 Member Stock Ownership Limits

• •A group can set rules on how much of the group's ownership (stock) one person can have.
• •These rules are written in the group's official rulebook (bylaws).
• •The rules help make sure no single person owns too much of the group.

A small club where members own parts of it decides to make a rule.

The club can say in its rulebook that no member can own more than 10% of the club. This way, one person can't own almost all of the club and make all the decisions.