Cal. Code Regs. Tit. 16, § 367.9 - Shares: Ownership and Transfer
(a) The shares of a chiropractic corporation
may be issued only to a licensed person and may be transferred only to a
licensed person or to the issuing corporation.
(b) Where there are two or more shareholders
in a chiropractic corporation and one of the shareholders:
(1) Dies, or
(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 transferred to a licensed person or to the issuing chiropractic
corporation, on such terms as are agreed upon. Such transfer shall occur not
later than six (6) months after any such death and not later than ninety (90)
days after the date he or she becomes a disqualified person. A person
disqualified by license suspension or revocation shall notify the Board when
his or her shares are transferred. In the event that a person becomes
disqualified by death, the representative of the deceased shareholder shall
notify the Board of the transfer of the deceased shareholder's
shares.
(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 again ceases to become a disqualified person.
(d) The restrictions of subsection (a) and,
if appropriate, subsection (b) of this section shall be set forth in the
corporation's bylaws or articles of incorporation.
(e) The share certificates of a chiropractic
corporation shall contain either:
(1) An
appropriate legend setting forth the restriction of subsection (a), and where
applicable, the restriction of subsection (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 bylaws or articles of incorporation of the
corporation wherein the restrictions are set forth.
Notes
Note: Authority cited: Section 1000- 4(b), Business and Professions Code. Reference: Section 1000(b), Business and Professions Code; and Section 13407, Corporations Code.
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