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HomeCorporations CodeCh. 1Art. 3§ 12301 Unincorporated Association Incorporation

§ 12301 Unincorporated Association Incorporation

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

§ 12301 Unincorporated Association Incorporation

This law lets an unincorporated group become a corporation by following its own rules, and it explains how the group's property and members move to the new corporation.

Key Takeaways

  • •The association must get proper internal approval before it can incorporate.
  • •The incorporation must be noted in the articles of incorporation.
  • •Property and voting members transfer to the new corporation, and creditors' rights stay the same.
  • •A certified copy filed with the county recorder shows the corporation owns the association's real property.
  • •If a corporation is formed without following this process, the old association can keep its name but the new corporation cannot use a similar name.

Example

A local hiking club that is currently an unincorporated association votes to become a corporation so it can own property and sign contracts.

The club approves the change according to its own rules, files articles that state it is incorporating, and provides a verified statement from two officers. Once filed, the land the club owns becomes owned by the new corporation, and the members who had voting rights become members of the corporation.

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

Official Source
View on CA.gov

§ 12301 Unincorporated Association Incorporation

(a) In the case of an existing unincorporated association, the association may change its status to that of a corporation upon a proper authorization for such by the association in accordance with its rules and procedures. (b) In addition to the matters required to be set forth in the articles pursuant to Section 12310, the articles in the case of an incorporation authorized by subdivision (a) shall set forth that an existing unincorporated association, stating its name, is being incorporated by the filing of the articles. (c) The articles filed pursuant to this section shall be accompanied by a verified statement of any two officers or governing board members of the association stating that the incorporation of the association by means of the articles to which the verified statement is attached has been approved by the association in accordance with its rules and procedures. (d) Upon the change of status of an unincorporated association to a corporation pursuant to subdivision (a), the property of the association becomes the property of the corporation and the members of the association who have any voting rights of the type referred to in Section 12238 become members of the corporation. (e) The filing for record in the office of the county recorder of any county in this state in which any of the real property of the association is located, of a copy of the articles of incorporation filed pursuant to this section, certified by the Secretary of State, shall evidence record ownership in the corporation of all interests of the association in and to the real property located in that county. (f) All rights of creditors and all liens upon the property of the association shall be preserved unimpaired. Any action or proceeding pending by or against the unincorporated association may be prosecuted to judgment, which shall bind the corporation, or the corporation may be proceeded against or substituted in its place. (g) If a corporation is organized by a person who is or was an officer, director or member of an unincorporated association and such corporation is not organized pursuant to subdivision (a), the unincorporated association may continue to use its name and the corporation may not use a name which is the same as or similar to the name of the unincorporated association. (Added by Stats. 1982, Ch. 1625, Sec. 3. Operative January 1, 1984.)

Last verified: January 10, 2026

Key Terms

unincorporated associationarticles of incorporationverified statementproperty transfercreditors' rights

Related Statutes

  • § 5121 Unincorporated Association Incorporation
  • § 7121 Unincorporated Association Incorporation
  • § 9121 Unincorporated Association Incorporation
  • § 12300 Corporation Formation Requirements
  • § 14004 Corporation Approval Oversight

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 12301.
View Official Source