Section 1399.158.2 - Shares: Ownership and Transfer(a) Where there are two or more shareholders in a speech-language pathology or audiology corporation and one of the shareholders: (2) Becomes a disqualified person as defined in Section 13401(d) of the Corporations Code, for a period exceeding ninety (90) days his or her shares shall be sold and transferred to the corporation, its shareholders, or other eligible licensed persons, on such terms as are agreed upon. Such sale or transfer shall not be later than six (6) months after any such death and not later than ninety (90) days after the date the shareholder becomes a disqualified person. The requirements of this subsection shall be set forth in the speech-language pathology or audiology corporation's articles of incorporation or by-laws.(b) A corporation and its shareholders may, but need not, agree that shares sold to it by a person who becomes a disqualified person may be resold to such person if and when he or she again becomes qualified to be a shareholder.(c) The share certificates of a speech-language pathology or audiology corporation shall contain an appropriate legend setting forth the restrictions of subsection (b), where applicable.(d) Nothing in these regulations shall be construed to prohibit a professional corporation from owning shares in a nonprofessional corporation or to prohibit a speech-language pathologist or audiologist from owning shares in more than one speech-language pathology or audiology corporation.(e) The restrictions on the ownership and transfer of shares in a speech-language pathology or audiology corporation apply to both legal and equitable title to such shares.Cal. Code Regs. Tit. 16, § 1399.158.2
1. Change without regulatory effect renumbering former section 1399.192 to section 1399.158.2 filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50). Note: Authority cited: Sections 2531.95 and 2599, Business and Professions Code. Reference: Section 2539, Business and Professions Code; and Sections 13401, 13403, 13406 and 13407, Corporations Code.
1. Change without regulatory effect renumbering former section 1399.192 to section 1399.158.2 filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).