Section 1397.37 - Shares: Ownership and Transfer(a) Where there are two or more shareholders in a psychology corporation and one of the shareholders: (2) Becomes a disqualified person as defined in Section 13401(d) of the Corporations Code, their shares shall be sold and transferred to the corporation, its shareholders or other eligible licensed persons on such terms as are agreed upon. Such sale or transfer shall not be later than six (6) months after any such death and ninety (90) days after the shareholder becomes a disqualified person. The requirements of this subsection shall be set forth in the psychology corporation's articles of incorporation or bylaws.(b) 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 they again becomes an eligible shareholder.(c) The share certificates of a psychology corporation shall contain an appropriate legend setting forth the restrictions of subsection (a).(d) Nothing in these regulations shall be construed to prohibit a psychology corporation from owning shares in a nonprofessional corporation.Cal. Code Regs. Tit. 16, § 1397.37
1. Amendment of subsections (e) and (f) filed 2-28-80; effective thirtieth day thereafter (Register 80, No. 9).
2. Amendment filed 6-15-83; effective thirtieth day thereafter (Register 83, No. 25).
3. Change without regulatory effect amending subsections (a)(2) and (b) filed 1-18-2023 pursuant to section 100, title 1, California Code of Regulations (Register 2023, No. 3). Note: Authority cited: Sections 2930 and 2999, Business and Professions Code. Reference: Section 2999, Business and Professions Code; and Sections 13401, 13403, 13406 and 13407, Corporations Code.
1. Amendment of subsections (e) and (f) filed 2-28-80; effective thirtieth day thereafter (Register 80, No. 9).
2. Amendment filed 6-15-83; effective thirtieth day thereafter (Register 83, No. 25).