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HomeCorporations CodeCh. 3Art. 1§ 12403 Corporate Membership Admission Rules

§ 12403 Corporate Membership Admission Rules

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

§ 12403 Corporate Membership Admission Rules

This law says a company can let anyone become a member, except for its own subsidiary.

Key Takeaways

  • •A company can let almost anyone become a member.
  • •A company can't let its own subsidiary become a member.
  • •The company's own rules might also say who can or can't be a member.

Example

A big company wants to let its smaller branch become a member.

The big company can't let its smaller branch become a member because the law says so.

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

Official Source
View on CA.gov

§ 12403 Corporate Membership Admission Rules

(a) Except as provided in subdivision (b), or in its articles or bylaws, a corporation may admit any person to membership. (b) A corporation may not admit its subsidiary to membership. (Repealed and added by Stats. 1982, Ch. 1625, Sec. 3. Operative January 1, 1984.)

Last verified: January 10, 2026

Key Terms

corporationmembershipsubsidiaryarticles or bylaws

Related Statutes

  • § 7315 Membership Admission Rules
  • § 5310 Corporate Membership Requirements
  • § 5313 Membership Admission Rules
  • § 9310 Corporate Membership Rules
  • § 9313 Membership Admission Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 12403.
View Official Source