SECTIONS 18310-18320 - California Statutes

CORPORATIONS CODE

SECTION 18310-18320

18310. (a) Unless otherwise provided by an unincorporated
association's governing principles, membership in the unincorporated
association is terminated by any of the following events:
(1) Resignation of the member.
(2) Expiration of the fixed term of the membership, unless the
membership is renewed before its expiration.
(3) Expulsion of the member.
(4) Death of the member.
(5) Termination of the legal existence of a member that is not a
natural person.
(b) Termination of membership does not relieve a person from an
obligation incurred as a member before termination.
(c) Termination of membership does not affect the right of an
unincorporated association to enforce an obligation against a person
incurred as a member before termination, or to obtain damages for its
breach.

18320. (a) This section only applies if membership in an
unincorporated association includes a property right or if expulsion
or suspension of a member would affect an important, substantial
economic interest. This section does not apply to an unincorporated
association that has a religious purpose.
(b) Expulsion or suspension of a member shall be done in good
faith and in a fair and reasonable manner. A procedure that satisfies
the requirements of subdivision (c) is fair and reasonable, but a
court may also determine that another procedure is fair and
reasonable taking into account the full circumstances of the
expulsion or suspension.
(c) A procedure for expulsion or suspension of a member that
satisfies the following requirements is fair and reasonable:
(1) The procedure is included in the unincorporated association's
governing documents.
(2) The member to be expelled or suspended is given notice,
including a statement of the reasons for the expulsion or suspension.
The notice shall be delivered at least 15 days before the effective
date of the expulsion or suspension.
(3) The member to be expelled or suspended is given an opportunity
to be heard by the person or body deciding the matter, orally or in
writing, not less than five days before the effective date of the
expulsion or suspension.
(d) A notice pursuant to this section may be delivered by any
method reasonably calculated to provide actual notice. A notice
delivered by mail shall be sent by first-class, certified, or
registered mail to the last address of the member shown on the
unincorporated association's records.
(e) A member may commence a proceeding to challenge the expulsion
or suspension of the member, including a claim alleging defective
notice, within one year after the effective date of the expulsion or
suspension. The court may order any relief, including reinstatement,
it determines is equitable under the circumstances. A vote of the
members or of the board may not be set aside solely because a person
was wrongfully excluded from voting by virtue of the challenged
expulsion or suspension, unless the court determines that the
wrongful expulsion or suspension was in bad faith and for the
purpose, and with the effect, of wrongfully excluding the member from
the vote or from the meeting at which the vote took place, so as to
affect the outcome of the vote.
(f) This section governs only the procedure for expulsion or
suspension and not the substantive grounds for expulsion or
suspension. An expulsion or suspension based on substantive grounds
that violate contractual or other rights of the member or are
otherwise unlawful is not made valid by compliance with this section.