Corporations Code section 12671

Any promoter, director, or officer of a corporation who knowingly and willfully issues or consents to the issuance of memberships or membership certificates with intent to defraud present or future members or creditors is guilty of a misdemeanor punishable by a fine of not more than one thousand dollars ($1,000) or by imprisonment in county jail for not more than one year or by both such fine and imprisonment.

Source: Section 12671, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=CORP§ionNum=12671.­ (updated Jan. 1, 1984; accessed Dec. 1, 2025).

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Verified:
Dec. 1, 2025

§ 12671's source at ca​.gov