Cal. Code Regs. tit. 16 § 1399.477

Current through Register 2024 Notice Reg. No. 45, November 8, 2024

Section 1399.477 - Shares: Ownership and Transfer

(a) Where there are two (2) or more shareholders in an acupuncture corporation and one (1) of the shareholders:

(1) Dies or

(2) Becomes a disqualified person as defined in Section 13401(e) of the Corporations Code, the shareholder's 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 acupuncture corporation's articles of incorporation or bylaws.

(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 the person again becomes an eligible shareholder.

(c) The share certificates of an acupuncture corporation shall contain an appropriate legend setting forth the restrictions of subsection (a).

(d) Nothing in these regulations shall be construed to prohibit an acupuncture corporation from owning shares in a nonprofessional corporation.

Cal. Code Regs. Tit. 16, § 1399.477

1. Amendment of subsection (f) filed 8-5-81; effective thirtieth day thereafter (Register 81, No. 32).
2. Amendment filed 10-14-83; effective thirtieth day thereafter (Register 83, No. 42).
3. Change without regulatory effect amending section filed 4-22-2022 pursuant to section 100, title 1, California Code of Regulations (Register 2022, No. 16).

Note: Authority cited: Sections 4933 and 4979, Business and Professions Code. Reference: Sections 4977.1 and 4979, Business and Professions Code; and Sections 13401, 13403, 13406 and 13407, Corporations Code.