D.C. Mun. Regs. tit. 17, r. 17-2543

Current through Register Vol. 71, No. 49, December 6, 2024

Rule 17-2543 - PARTNERSHIP AND CORPORATE PRACTICE: OWNERSHIP AND TRANSFER OF SHARES IN A PROFESSIONAL CORPORATION

2543.1

The shares of an accountancy corporation shall only be held by the following:

(a) The Corporation;

(b) An individual who either:

(1) Holds a certified public accountant's license pursuant to this chapter and D.C. Official Code § 47-2853.01 et seq. (2001);

(2) Qualifies to hold shares in the corporation pursuant to D.C. Official Code §§ 29-408 (2001) and 47-2853.44 (2001); or

(c) An individual who is the personal representative or the estate of a deceased or legally incompetent shareholder.

2543.2

If there are two (2) or more shareholders in an accountancy corporation and one (1) of the shareholders dies or becomes a disqualified person as defined in D.C. Official Code § 29-415 (2001), that person's shares shall be sold and surrendered in accordance with D.C. Official Code § 29-416 (2001).

2543.3

The restrictions listed in §§ 2543.1 and 2543.2 shall be set forth in the corporation's by-laws or articles of incorporation.

2543.4

The share certificates of an accountancy corporation shall contain the following legend: "The ownership and transfer of these shares and the rights and obligations of shareholders are subject to the limitations of the District of Columbia Professional Corporation Act."

2543.5

Each license holder shall notify the Board of Accountancy within thirty (30) days of the occurrence of any change relating to the requirements of §§ 2542 or 2543; including any changes in officers, shareholders, partners, and resident managers.

D.C. Mun. Regs. tit. 17, r. 17-2543

Final Rulemaking published at 51 DCR 4401 (April 30, 2004)