QUESTION

Can we give a member of our social club all the individual accounts of other members so she can see who has paid on time?

Asked on Jan 25th, 2016 on Corporate Law - California
More details to this question:
We are a 501c7 non-profit mutual benefit social club. Member wants to "peruse" the records to see for herself who has not paid on time. Seems like a fishing expedition that is not covered in the member's right to see the general ledger.
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1 ANSWER

Real Estate Attorney serving Oakland, CA at Sack Rosendin LLP
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Yes, you have to. The Corporations Code requires that you allow any member to inspect and copy the club's books and records. You do not need to  provide him with copies or extracts, but you must allow him to make  his own. If you refuse to, he can sue to obtain access, and the court can order the club to reimburse him for  his attorney's fees and court costs. If you refuse, is anyone really going to go that far? If it's just a social club, then it's not like seeing the records is going to make the person any money.   If you appreciate this free advice, please remember to refer me to any friends or acquaintances who need a lawyer. Referrals are still our best source of new business.   Do you have a revocable living trust to protect your heirs against probate? Probate takes forever, is expensive, and is annoying. Do your family a favor. Set up a trust, and put all your property, especially any real property, into the trust. Since it is revocable, you can change it, add to it, take property out of it, or even cancel it completely, at any time. We set up such trusts, provide a pour-over will as a back-up for any property that does not make it into the trust, provide you with blank durable powers of attorney for health care and financial decisions, in case you become incapable of making such decisions while still alive, and convey one piece of real property to the trust, usually the family home, for $1500.00. If you would like to hire me to do this, let me know, and I'll send you a list of the information I need.   Dana Sack        
Answered on Jan 26th, 2016 at 9:49 AM

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