SECTIONS 54231-54239 - California Statutes

FOOD AND AGRICULTURAL CODE

SECTION 54231-54239

54231. Under the terms and conditions which are prescribed in the
bylaws adopted by it, an association may admit as members or issue
common stock to only such persons as are engaged in the production of
any product which is to be handled by or through the association, or
that use or employ any service or facility offered by the
association on, or in connection with, land which is used for the
production of any product, including the lessees and tenants of land
which is used for the production of such product and any lessors and
landlords that receive as rent all or part of the crop which is
raised on the leased premises.

54232. If a member of a nonstock association is other than a
natural person, such member may be represented by any individual,
associate, officer, or manager or member of it, who is duly
authorized in writing.

54233. Any association may become a member or stockholder of any
other association.

54234. If a member of an association which is established without
shares of stock has paid his membership fee in full, he shall receive
a certificate of membership.

54235. An association shall not issue a certificate for stock to a
member until it has been fully paid for. The promissory notes of the
members may be accepted by the association as full or partial
payment. The association shall hold the stock as security for the
payment of the note, but such retention as security does not affect
the member's right to vote.

54236. An association, in its bylaws, may limit the amount of
common stock which any member may own.

54237. The bylaws shall prohibit the transfer of the common stock
or membership certificates of the associations to any person that is
not qualified to be a shareholder or member as specified in this
chapter. Such restrictions shall be printed upon every certificate of
stock or membership which is subject to them.

54238. The association may, at any time, as specified in the
bylaws, except when the debts of the association exceed 50 percent of
its assets, buy in or purchase its common stock at the book value of
the common stock, as conclusively determined by the board of
directors, and pay for it in cash within one year thereafter.

54239. A member or stockholder is not liable for the debts of the
association to an amount which exceeds the sum which remains unpaid
on his membership fee or his subscription to the capital stock,
including any unpaid balance on any promissory note which is given in
payment of the membership fee or the subscription to the capital
stock.