Cal. Code Regs. tit. 16 § 1343

Current through Register 2024 Notice Reg. No. 23, June 7, 2024

Section 1343 - Requirements for Professional Corporations

A professional corporation shall comply with the following provisions:

(a) The corporation is organized and exists pursuant to the general corporation law and is a professional corporation within the meaning of the Moscone-Knox Professional Corporations Act (Corporations Code Section 13400 et seq.).

(b) Each shareholder, director or officer (except as provided in Section 13403 of the Corporations Code and Section 2408 of the code) holds a valid physician's and surgeon's certificate or certificate to practice podiatric medicine, as the case may be, provided that, a licensed podiatrist, psychologist, optometrist, physician's assistant, clinical social worker, marriage, family and child counselor, chiropractor or registered nurse may be a shareholder, director or officer of a medical corporation so long as such licensed persons own no more than 49% of the total shares issued by the medical corporation and the number of licensed persons owning shares in the medical corporation does not exceed the number of physicians owning shares in such a corporation, and a licensed physician may be a shareholder, director or officer of a podiatry corporation so long as such physician owns no more than 49% of the total shares issued by the podiatry corporation and the number of licensed physicians owning shares in the podiatry corporation does not exceed the number of podiatrists owning shares in such a corporation. A physician, psychologist, optometrist and registered nurse may also be a shareholder, director or officer in a podiatry corporation subject to the same numerical restrictions.

(c) Each professional employee of the corporation who will practice medicine, podiatry, psychology, optometry, clinical social work, marriage, family and child counselling, chiropractic or nursing, whether or not a director, officer or shareholder, holds a valid license.

(d) A physician and surgeon or podiatrist may be a shareholder, officer or director in more than one professional corporation.

Cal. Code Regs. Tit. 16, § 1343

1. Amendment of subsections (b) and (d) filed 5-10-78; effective thirtieth day thereafter (Register 78, No. 19).
2. Amendment of subsections (b) and (d) filed 4-11-80; effective thirtieth day thereafter (Register 80, No. 15).
3. Amendment filed 8-5-81; effective thirtieth day thereafter (Register 81, No. 32).
4. Amendment filed 2-16-84; effective thirtieth day thereafter (Register 84, No. 7).
5. Change without regulatory effect amending subsections (b) and (c) filed 3-2-98 pursuant to section 100, title 1, California Code of Regulations (Register 98, No. 10).

Note: Authority cited: Sections 2018 and 2412, Business and Professions Code. Reference: Sections 2406 and 2408, Business and Professions Code; Sections 13401, 13401.5, 13403, 13405, 13406 and 13407, Corporations Code.