Unincorporated Association Governance - Waiting For The Legislature

Allen Matkins
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Allen Matkins

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 Code § 18000 et seq., repealed those statutes and enacted a more comprehensive and generally applicable set of provisions with respect to the contractual liability of members as well as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

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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