§ 12443. — 12443. (Added by Stats. 1982, Ch. 1625, Sec. 3.)

California § 12443.

• Jurisdiction: California
• Code CORP: Corporations Code - CORP
• Div.: 3.
• Title 1.: DIVISION 3. CORPORATIONS FOR SPECIFIC PURPOSES
• Part 2.: PART 2. COOPERATIVE CORPORATIONS
• Ch. 3.: CHAPTER 3. Members
• Art. 5.: ARTICLE 5. Rights and Obligations of Members and Creditors

Text

(a)
No action shall be brought by or on behalf of any creditor to reach and apply the liability, if any, of a member to the corporation to pay the amount due on such member’s membership or otherwise due to the corporation unless final judgment has been rendered in favor of the creditor against the corporation and execution has been returned unsatisfied in whole or in part or unless such proceedings would be useless.
(b)
All creditors of the corporation, with or without reducing their claims to judgment, may intervene in any such creditor’s action to reach and apply unpaid amounts due the corporation and any or all members who owe amounts to the corporation may be joined in such action. Several judgments may be rendered for and against the parties to the action or in favor of a receiver for the benefit of the respective parties thereto.
(c)
All amounts paid by any member in any such action shall be credited on the unpaid balance due the corporation by such member.

Legislative History

Added by Stats. 1982, Ch. 1625, Sec. 3. Operative January 1, 1984.