Section 1548 - Shares: Ownership and Transfer(a) The shares of an optometric corporation may be issued only to a natural person licensed to practice optometry and may be transferred only to a natural person licensed to practice optometry or to the issuing corporation.(b) Where there are two or more shareholders in an optometric 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/her shares shall be sold and transferred to a natural person licensed to practice optometry or to the issuing optometric corporation, 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 he/she became a disqualified person.(c) 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/she again ceases to become a disqualified person.(d) The restrictions of subdivision (a) and, if appropriate, subdivision (b) of this section shall be set forth in the corporation's bylaws or articles of incorporation.(e) The income of an optometric corporation attributable to optometric services rendered while a shareholder is a disqualified person shall not in any manner accrue to the benefit of such shareholder or his/her shares.(f) The share certificates of an optometric corporation shall contain either: (1) An appropriate legend setting forth the restriction of subdivision (a), and where applicable, the restriction of subdivision (b), or(2) An appropriate legend stating that ownership and transfer of the shares are restricted and specifically referring to an identified section of the by-laws or articles of incorporation of the corporation wherein the restrictions are set forth.Cal. Code Regs. Tit. 16, § 1548
1. Amendment filed 10-25-83; effective thirtieth day thereafter (Register 83, No. 44). Note: Authority cited: Section 3167, Business and Professions Code. Reference: Sections 3160, 3164 and 3167, Business and Professions Code; and Sections 13401, 13401.5, 13406 and 13407, Corporations Code.
1. Amendment filed 10-25-83; effective thirtieth day thereafter (Register 83, No. 44).