ARTICLE
11 June 2021

Unincorporated Association Governance - Waiting For The Legislature

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Allen Matkins Leck Gamble Mallory & Natsis LLP

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Allen Matkins, founded in 1977, is a California-based law firm with more than 200 attorneys in four major metropolitan areas of California: Los Angeles, Orange County, San Diego, and San Francisco. The firm's areas of focus include real estate, construction, land use, environmental and natural resources, corporate and securities, real estate and commercial finance, bankruptcy, restructurings and creditors' rights, joint ventures, and tax; labor and employment, and trials, litigation, risk management, and alternative dispute resolution in all of these areas. For more information about Allen Matkins please visit www.allenmatkins.com.
In 2004, the California legislature enacted an unincorporated associations law as part of the Corporations Code. Cal. Stats. 2004, ch. 178 (SB 1746).
United States California Corporate/Commercial Law

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 Code § 18000 et seq., repealed those statutes and enacted a more comprehensive and generally applicable set of provisions with respect to the contractual liability of members as well as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. 

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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