Section 3151 Of Article 8. Financial Provisions From California Public Utilities Code >> Division 1. >> Part 4. >> Chapter 1. >> Article 8.
3151
. (a) Any share or membership issued by an association is
exempt from Part 2 (commencing with Section 25100) of Division 1 of
Title 4 of the Corporations Code if the aggregate investment of a
shareholder or member in shares or memberships sold by an association
does not exceed one thousand dollars ($1,000).
(b) This exemption does not apply to the shares or memberships in
an association if any promoter of those shares or memberships expects
or intends to make a profit directly or indirectly from any business
or activity associated with the association or from the operation of
the association or to receive a salary or other remuneration from
the association. Furthermore, this exemption does not apply to
nonvoting shares or memberships in an association issued to any
person who does not possess, and who will not acquire in connection
with the issuance of nonvoting memberships, voting power in the
association.