BILL NUMBER: AB 2755 CHAPTERED
BILL TEXT
CHAPTER 914
FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2014
APPROVED BY GOVERNOR SEPTEMBER 30, 2014
PASSED THE SENATE AUGUST 28, 2014
PASSED THE ASSEMBLY MAY 19, 2014
AMENDED IN ASSEMBLY MAY 13, 2014
INTRODUCED BY Assembly Member Bocanegra
MARCH 24, 2014
An act to amend Section 5047 of the Corporations Code, relating to
corporations.
LEGISLATIVE COUNSEL'S DIGEST
AB 2755, Bocanegra. Nonprofit corporations: directors.
The Nonprofit Corporation Law, among other things, regulates the
organization and operation of nonprofit public benefit corporations,
nonprofit mutual benefit corporations, and nonprofit religious
corporations and defines terms for its purposes, including, but not
limited to, the term "director."
This bill would clarify the meaning of "director" does not include
a person who does not have the authority to vote as a member of the
governing body.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 5047 of the Corporations Code is amended to
read:
5047. Except where otherwise expressly provided, "directors"
means natural persons, designated in the articles or bylaws or
elected by the incorporators, and their successors and natural
persons designated, elected or appointed by any other name or title
to act as members of the governing body of the corporation. If the
articles or bylaws designate that a natural person is a director or a
member of the governing body of the corporation by reason of
occupying a specified position within the corporation or outside the
corporation, without limiting that person's right to vote as a member
of the governing body, that person shall be a director for all
purposes and shall have the same rights and obligations, including
voting rights, as the other directors. A person who does not have
authority to vote as a member of the governing body of the
corporation, is not a director as that term is used in this division
regardless of title.