This section is called the Cooperative Corporation Law. It primarily targets the setup and running of various cooperatives, such as those focused on consumer needs, worker rights, and environmental concerns like recycling or hazardous waste treatment, provided they choose to incorporate according to these rules.

This law says that a certain type of corporation can be formed in California for any legal reason but must mainly operate to benefit its members who use the corporation's services or products. Profits or benefits from the corporation should be shared with members or users fairly, based on their involvement with the corporation. These corporations are run democratically and are not made to only create profit for themselves or their members, but rather to support the members who are actively participating.

This law explains how a worker cooperative in California should handle its earnings and losses. Basically, the cooperative's net earnings and losses should be distributed according to what its founding documents say. When the cooperative decides to share its profits, called patronage distributions, these profits should be divided among members based on how much each contributed through their work. The law also allows these earnings to be distributed in various forms, such as cash, credits, notices, or even stock in the cooperative.

This part of the law ensures that corporations existing before January 1, 1984, continue to be governed by relevant provisions, even if those provisions are modified or repealed. The enactment of new laws doesn't affect the existence of these corporations, and any past liabilities or legal actions against them remain intact despite legislative changes.

This section explains that the definitions provided in this part of the code are used to interpret how the rest of the part should be understood, unless stated otherwise or the situation requires a different interpretation.