SECTIONS 54111-54122 - California Statutes

FOOD AND AGRICULTURAL CODE

SECTION 54111-54122

54111. Each association shall, within 30 days after its
incorporation, adopt for its government and management, a code of
bylaws, not inconsistent with this chapter. The vote or written
assent of shareholders or members that hold at least a majority of
the voting power is necessary to adopt such bylaws and is effectual
to repeal or amend any bylaws, or to adopt additional bylaws.
The power to repeal and amend the bylaws, and adopt new bylaws,
may, by a similar vote, or similar written assent, be delegated to
the board of directors, which authority may, by a similar vote, or
similar written assent, be revoked.

54112. The bylaws may prescribe the time, place, and manner of
calling and conducting its meetings. Meetings of members or
stockholders shall be held at the place as provided in the bylaws;
and if no provision be made, then in the city where the principal
place of business is located at a place designated by the board of
directors. Meetings of the board of directors may be held at any
place within or without the state which is fixed by a quorum of the
board of directors unless otherwise provided in the articles of
incorporation or bylaws.

54113. The bylaws may prescribe the number of stockholders or
members which constitutes a quorum.

54114. The bylaws may prescribe the right of members or
stockholders to vote by proxy or by mail or both, and the conditions,
manner, form, and effects of such votes; the right of members or
stockholders to cumulate their votes and the prohibition, if desired,
of cumulative voting.

54115. The bylaws may prescribe the number of directors which
constitutes a quorum.

54116. (a) The bylaws may prescribe the qualifications,
compensation, duties, and term of office of directors and officers
and the time of their election.
(b) The number of directors set forth in the articles of
incorporation shall be either a fixed number or a variable number. If
a fixed number, it shall not be less than three, and if a variable
number, the stated minimum shall not be less than three and the
stated maximum shall not be greater than two times the stated minimum
minus one.
(c) The number of directors may also be set forth in the bylaws
either as a fixed number or as a variable number subject to the same
limitations as in subdivision (b). After shares have been issued or
members have been admitted, any adoption or amendment of such bylaw
provision shall be approved by the outstanding shares as provided in
Section 152 of the Corporations Code.
(d) In the event of an inconsistency between an article provision
referred to in subdivision (b) and a bylaw provision referred to in
subdivision (c), the provision more recently adopted or amended shall
prevail.
(e) If a variable number of directors is set forth in the articles
of incorporation or the bylaws, the exact number of directors shall
be fixed, within the limits specified, by approval of the board of
directors or the shareholders as provided in Section 153 of the
Corporations Code in the manner designated in the bylaws.

54117. The bylaws may prescribe penalties for violations of the
bylaws.

54118. The bylaws may prescribe the amount of entrance,
organization, and membership fees, if any; the manner and method of
collection of such fees; and the purposes for which they may be used.

54119. The bylaws may prescribe the amount which each member or
stockholder shall be required to pay annually, or from time to time,
if at all, to carry on the business of the association; the charge,
if any, to be paid by each member or stockholder for services which
are rendered by the association to him and the time of payment and
the manner of collection; and the marketing contract between the
association and its members or stockholders which every member or
stockholder may be required to sign.

54120. The bylaws may prescribe the amount of any dividends that
may be declared on the stock or membership capital. To the extent
that dividends are payable out of the excess of association income
over association expenses attributable to business transacted with or
for members, dividends shall not exceed 8 percent per annum.
Dividends are in the nature of interest, and do not affect the
nonprofit character of any association that is organized pursuant to
this chapter.

54121. The bylaws may prescribe the number and qualification of
members or stockholders of the association and the conditions
precedent to membership or ownership of common stock; the method,
time, and manner of permitting members to withdraw or the holders of
common stock to transfer their stock; the manner of assignment and
transfer of the interest of members, and of the shares of common
stock; the conditions upon which, and time when, membership of any
member shall cease; the automatic supsension of the rights of a
member when he ceases to be eligible to membership in the
association; and the mode, manner, and effect of the expulsion of a
member.

54122. The bylaws may prescribe the manner of determining the value
of a member's interest and provision for its purchase by the
association upon the death or withdrawal of a member or upon the
expulsion of a member or forfeiture of his membership, or at the
option of the association, the purchase at a price fixed by
conclusive appraisal by the board of directors; and the conditions
and terms for the repurchase by the association from its stockholders
of their stock upon their disqualification as stockholders. In case
of the expulsion of a member, and where the bylaws do not provide any
procedure or penalty, the board of directors shall equitably and
conclusively appraise his property interest in the association and
shall fix the amount of his property interest in money, which shall
be paid to him within one year after such expulsion.