§ 8811 Fraudulent Membership Certificate Issuance

Corporations Code·California

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Key Takeaways

•If you're in charge of a company, you can't lie or trick people when giving out memberships or certificates.
•Doing this on purpose to cheat members or people the company owes money to is against the law.
•If you break this rule, you could pay up to $1,000 or go to jail for up to a year, or both.

Example

The boss of a gym sells fake lifetime memberships, knowing the gym will close soon.

The boss is breaking the law because they lied to trick people into buying memberships, cheating both the members and anyone the gym owes money to.

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

Official Source

View on CA.gov

§ 8811 Fraudulent Membership Certificate Issuance

Any promoter, director, or officer of a corporation who knowingly and willfully issues or consents to the issuance of memberships or membership certificates with intent to defraud present or future members or creditors is guilty of a misdemeanor punishable by a fine of not more than one thousand dollars ($1,000) or by imprisonment in county jail for not more than one year or by both such fine and imprisonment. (Added by Stats. 1978, Ch. 567.)

Last verified: January 23, 2026

Key Terms

promoter, director, or officer knowingly and willfully memberships or membership certificates intent to defraud

References

Official text at leginfo.legislature.ca.gov
California Legislature. Corporations Code. Section 8811.

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Key Terms

Related Statutes

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Key Takeaways

Example

Key Terms

Related Statutes

References