California Corporate & Securities Law

Although I have yet to encounter the situation, California provides a mechanism for a corporation formed under the General Corporation Law to become a nonprofit religious corporation. Since religion is involved, it may come as a surprise that no...

The California Corporations Code includes provisions governing a wide variety of nonprofit organizations. However, the "Big 3" categories of nonprofit corporations are the public benefit, mutual benefit and religious corporations. While the drafters...

In prescribing the duties of directors, California Corporations Code Section 309 provides that a director is entitled to rely on information, opinions, reports or statements prepared or presented by "counsel, independent accountants or other persons...

Nonprofit organizations depend heavily upon their volunteers. What if a court were to hold that volunteers were in fact employees entitled to minimum and overtime wages, meal and rest breaks, wage statements and other benefits required by law? The...

Several provisions of California's Nonprofit Public Benefit Corporation Law confer standing on an officer, director, or member. See Sections 5142, 5223, 5233, and/or 5710. In an opinion issued yesterday, the Court of Appeal addressed the question of...

Yesterday's post discussed one aspect of the Court of Appeal's holding in Coley v. Eskaton, 2020 Cal. App. LEXIS 629. The case involved a homeowner's lawsuit against two directors of the homeowner's association and their employers. Among other...

A homeowner in a common interest development sued the homeowner association and two of its directors and the directors employers. The directors were employed by two related companies engaged in the development and support of common interest...

As a child, I was always puzzled when I saw a Grange Hall.  Was Grange a misspelling of "range"?  If not, what was a "grange"?  Only later did I learn that "grange" was derived from the Latin word, granum, meaning a seed. The word forms part of the...