Section 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: (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.Cal. Code Regs. Tit. 16, § 367.9
1. Amendment of subsection (b)(2) and new NOTE filed 7-19-2001; operative 8-18-2001 (Register 2001, No. 29). Note: Authority cited: Section 1000- 4(b), Business and Professions Code. Reference: Section 1000(b), Business and Professions Code; and Section 13407, Corporations Code.
1. Amendment of subsection (b)(2) and new Note filed 7-19-2001; operative 8-18-2001 (Register 2001, No. 29).