Legislation
SECTION 501
Stock and shares prohibited; membership certificates authorized
Not-for-Profit Corporation (NPC) CHAPTER 35, ARTICLE 5
§ 501. Stock and shares prohibited; membership certificates authorized.
A corporation shall not have stock or shares or certificates for stock
or for shares, but may issue non-transferable membership certificates or
cards to evidence membership, whether or not connected with any
financial contribution to the corporation, as provided in section 601
(Members). The fact that the corporation is a not-for-profit
corporation, and that the membership certificate or card is
non-transferable shall be noted conspicuously on the face or back of
each such certificate or card.
A corporation shall not have stock or shares or certificates for stock
or for shares, but may issue non-transferable membership certificates or
cards to evidence membership, whether or not connected with any
financial contribution to the corporation, as provided in section 601
(Members). The fact that the corporation is a not-for-profit
corporation, and that the membership certificate or card is
non-transferable shall be noted conspicuously on the face or back of
each such certificate or card.