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Unincorporated Association Governance - Waiting For The Legislature

In 2004, the California legislature enacted an unincorporated associations law as part of the Corporations Code.  Cal. Stats. 2004, ch. 178 (SB 1746).   At the time, the law governing unincorporated associations consisted of various scattered provisions.   The new law, codified at Cal. Corp. Code § 18000 et seq., repealed those statutes and enacted a more comprehensive and generally applicable set of provisions with respect to the contractual liability of members as well as directors, officer and agents.  The following year, the legislature added additional default rules with respect to additional matters, including member voting, mergers and dissolution.  Cal. Stats. 2005, ch. 116 (SB 702). 

As part of the 2005 legislation, the legislature added Section 18300 to the Corporations Code which provides:

It is the intent of the Legislature to enact legislation relating to the governance of unincorporated associations.

Sixteen years later, the legislature has yet to act on this intention.  

© 2010-2021 Allen Matkins Leck Gamble Mallory & Natsis LLP National Law Review, Volume XI, Number 159
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About this Author

Keith Paul Bishop, Corporate Transactions Lawyer, finance securities attorney, Allen Matkins Law Firm
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Keith Bishop works with privately held and publicly traded companies on federal and state corporate and securities transactions, compliance, and governance matters. He is highly-regarded for his in-depth knowledge of the distinctive corporate and regulatory requirements faced by corporations in the state of California.

While many law firms have a great deal of expertise in federal or Delaware corporate law, Keith’s specific focus on California corporate and securities law is uncommon. A former California state regulator of securities and financial institutions, Keith has decades of...

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