Section 4268 - Shares: Ownership and Transfer(a) The shares of a naturopathic corporation may be issued or transferred only to the issuing corporation or to an appropriately licensed person in accordance with Section 13401.5 of the Corporations Code.(b) Where there are two or more shareholders in a corporation and one of its shareholders dies, or becomes a disqualified person as defined in Section 13401(e) of the Corporations Code, for a period exceeding ninety (90) days, his or her shares shall be sold and transferred to a licensed person or to the issuing 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 the shareholder 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 or she again ceases to become a disqualified person.(d) The restrictions of subdivision (a) where appropriate and, if appropriate, subdivision (c) of this section shall be set forth in the corporation's by-laws or articles of incorporation.(e) The income of the corporation attributable to professional, licensed services rendered while a shareholder is a disqualified person shall not in any manner accrue to the benefit of such shareholder or his or her shares.(g) The share certificates of the corporation shall contain either:(1) An appropriate legend setting forth the restriction of subdivision (a) where appropriate and where applicable, the restriction of subdivision (c), 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, § 4268
1. New section filed 11-8-2004 as an emergency; operative 11-8-2004 (Register 2004, No. 46). A Certificate of Compliance must be transmitted to OAL by 3-8-2005 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 3-8-2005 as an emergency; operative 3-8-2005 (Register 2005, No. 10). A Certificate of Compliance must be transmitted to OAL by 7-6-2005 or emergency language will be repealed by operation of law on the following day.
3. Certificate of Compliance as to 3-8-2005 order transmitted to OAL 7-5-2005 and filed 8-16-2005 (Register 2005, No. 33). Note: Authority cited: Sections 3622 and 3675, Business and Professions Code. Reference: Sections 3673 and 3675, Business and Professions Code; and Sections 13401 and 13401.5, Corporations Code.
1. New section filed 11-8-2004 as an emergency; operative 11-8-2004 (Register 2004, No. 46). A Certificate of Compliance must be transmitted to OAL by 3-8-2005 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 3-8-2005 as an emergency; operative 3-8-2005 (Register 2005, No. 10). A Certificate of Compliance must be transmitted to OAL by 7-6-2005 or emergency language will be repealed by operation of law on the following day.
3. Certificate of Compliance as to 3-8-2005 order transmitted to OAL 7-5-2005 and filed 8-16-2005 (Register 2005, No. 33).