Cal. Code Regs. tit. 10 § 260.102.4

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

Section 260.102.4 - One Class of Stock

For the purposes of subdivision (h) of Section 25102 of the Code:

(a) Debt securities are not a "class of stock" though they may be determined to be "equity" for the purpose of income taxes with respect to either the corporation or the shareholders thereof or for the purpose of priorities in bankruptcy or otherwise among creditors of the corporation.

(b) A corporation does not have "only one class of stock" outstanding if, at the time its shares are issued, there exists or is presently intended to be executed a shareholders' agreement pursuant to which any of the rights, preferences, privileges, or restrictions upon its shares, as enumerated in Subdivision (e) of Section 25103 of the Code, are or would be modified as to any such shares, or as to the holders of any such shares, in a manner not applicable to all outstanding shares.

Cal. Code Regs. Tit. 10, § 260.102.4

1. Amendment filed 5-15-78; effective thirtieth day thereafter (Register 78, No. 20).
2. Change without regulatory effect amending subsection (b) filed 9-25-2002 pursuant to section 100, title 1, California Code of Regulations (Register 2002, No. 39).

Note: Authority cited: Section 25610, Corporations Code. Reference: Sections 25102 and 25103, Corporations Code.