Under the terms and conditions that are prescribed in the bylaws adopted by it, an association may admit as members or issue common stock only to persons engaged in the cultivation of a cannabis product that is to be handled by or through the association.
Cannabis Cooperative AssociationsMembers
Section § 26229
This law allows an association to admit members or give out common stock, but only to folks who are actually growing a cannabis product that the association will manage or sell.
cannabis cultivation association membership bylaws
Section § 26229.1
This law says that if an organization, rather than an individual, is part of a nonstock association, it can appoint someone to represent it. The representative must be someone from within the organization and needs written permission to act on its behalf.
If a member of a nonstock association is other than a natural person, the member may be represented by any individual, associate, officer, or manager or member of it, who is duly authorized in writing.
nonstock association organization representation written authorization
Section § 26229.2
This law allows one association to join or own shares in another association.
Any association may become a member or stockholder of any other association.
association membership stockholder inter-association ownership
Section § 26229.3
If you're part of a group that doesn't have stock and you've paid all your membership fees, you'll get a membership certificate.
If a member of an association that is established without shares of stock has paid his membership fee in full, he or she shall receive a certificate of membership.
membership fee association certificate of membership
Section § 26229.4
This section talks about rules an association must follow when issuing stock to its members. Basically, the association can't give out stock certificates until the member has fully paid for the stock. However, members can use promissory notes (which are like IOUs) for full or partial payment. The association keeps the stock as collateral until the member fully pays off the note, but this doesn't change the member's ability to vote in the association.
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 the retention as security does not affect the member’s right to vote.
certificate for stock fully paid promissory notes
Section § 26229.5
This law allows an organization to set rules in its bylaws to restrict how much common stock each member can hold.
An association, in its bylaws, may limit the amount of common stock that any member may own.
association bylaws common stock member ownership limit
Section § 26229.6
This law states that the rules of an association must prevent its stock or membership certificates from being transferred to someone who isn't allowed to be a member or shareholder. These rules should be clearly printed on each certificate.
The bylaws shall prohibit the transfer of the common stock or membership certificates of the associations to a person that is not qualified to be a shareholder or member as specified in this chapter. These restrictions shall be printed upon every certificate of stock or membership that is subject to them.
bylaws transfer restrictions stock certificates
Section § 26229.7
This law allows an association to buy back its own common stock, but only if its debts are not more than half of its assets. The stock price is based on its book value, as decided by the board of directors, and the association has one year to pay for the stock in cash.
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.
association bylaws common stock buyback book value
Section § 26229.8
If you're a member or stockholder in an association, you only owe as much as you still need to pay for your membership, or the stock you've subscribed to. You are not responsible for paying any more than that amount towards the association's debts.
A member or stockholder is not liable for the debts of the association to an amount that exceeds the sum that remains unpaid on his membership fee or his subscription to the capital stock, including any unpaid balance on any promissory note that is given in payment of the membership fee or the subscription to the capital stock.
member liability stockholder responsibility association debts
