Section 23775 - Suspension of Exempt Corporate Status(a) The corporate powers, rights and privileges of an exempt domestic corporation may be suspended and the exercise of corporate powers, rights and privileges of a foreign exempt corporation in this state may be forfeited if the organization fails to-- (1) File an annual return (Form 199) required under Section 23772 on or before the close of the last day of the 12th month following the close of the income year.(2) Pay any amount due under Section 23703 or 23772 on or before the close of the last day of the 12th month following the close of the income year.(3) File a return or notify the Franchise Tax Board of its annual accounting period within nine months after its date of incorporation or qualification.(b) Corporations will normally receive at least one notice of their delinquency before suspension is effected. However, there is no legal requirement that such notice be sent to or received by the organization.(c) A suspended or forfeited corporation cannot exercise any of the corporate powers, other than to set forth a new name by amending its articles of incorporation. Thus, a suspended or forfeited corporation may not prosecute or defend an action at law or in equity, but may obtain a continuance to permit revivor to be accomplished. The exemption of a suspended corporation that continues to operate (other than for winding up) may be revoked and the organization will be subject to at least the minimum tax under Section 23303.(d) Evidence of suspension or forfeiture is in the form of a list issued by the Franchise Tax Board and transmitted to the Secretary of State. The suspension or forfeiture is effective upon transmittal of said list to the Secretary of State. Also, a notice of suspension is normally mailed to the last known address of the corporation by the Franchise Tax Board.Cal. Code Regs. Tit. 18, § 23775
1. Amendment of subsection (a)(1) filed 8-25-88; operative 9-24-88 (Register 88, No. 36). Note: Authority cited: Section 26422, Revenue and Taxation Code. Reference: Sections 23775, 23301.5 and 23302, Revenue and Taxation Code.
1. Amendment of subsection (a)(1) filed 8-25-88; operative 9-24-88 (Register 88, No. 36).