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HomeFood and Agricultural CodeDiv. 20Ch. 1Art. 9§ 54237 Shareholder Transfer Restrictions

§ 54237 Shareholder Transfer Restrictions

Food and Agricultural Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 54237 Shareholder Transfer Restrictions

Key Takeaways

  • •You can't sell or give your shares in the group to just anyone.
  • •Only people who meet the group's rules can own shares.
  • •Every share certificate must say these rules on it.

Example

You own shares in a local farming group and want to sell them to your friend who isn’t a farmer.

You can’t sell your shares to your friend because they don’t meet the group’s rules. The rules are printed on your share certificate.

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

Official Source
View on CA.gov

§ 54237 Shareholder Transfer Restrictions

The bylaws shall prohibit the transfer of the common stock or membership certificates of the associations to any person that is not qualified to be a shareholder or member as specified in this chapter. Such restrictions shall be printed upon every certificate of stock or membership which is subject to them. (Enacted by Stats. 1967, Ch. 15.)

Last verified: January 23, 2026

Key Terms

membershipshareholderstockassociationrestriction

Related Statutes

  • § 54234 Membership Certificate Issuance
  • § 54239 Member Debt Liability Limit
  • § 54121 Membership And Stockholder Rules
  • § 54122 Member Interest Buyback Rules
  • § 54232 Nonstock Association Member Representation

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Food and Agricultural Code. Section 54237.
View Official Source