Bill > AB1161

This bill makes numerous amendments to the California Corporations Code concerning cooperative corporations, aiming to clarify and update provisions related to their formation, operation, and governance. Key changes include explicitly defining "share" as a unit of proprietary interest for shareholders, distinguishing between worker cooperatives and other types of cooperatives in various sections, and clarifying that memberships in worker cooperatives are generally nontransferable. The bill also updates language regarding mergers, distributions, and the reporting requirements for cooperatives, ensuring that provisions are more clearly applicable to both members and shareholders where relevant. Additionally, it addresses the naming conventions for worker cooperatives, requiring them to include "worker cooperative" in their name, and modifies rules for board vacancies and the abandonment of merger agreements to better accommodate different cooperative structures. The amendments also refine the procedures for voluntary dissolution and the distribution of assets, ensuring clarity for creditors, shareholders, and members.