9 Summary of California Law (10th), Corporations

 

<d1.o n="I. ">INTRODUCTION

<d2.o n="A. ">In General.

<d3.o n="1. " sec="[§1] ">Nature of Corporation.

<d3.o n="2. " sec="[§2] ">Reserved Legislative Power Over Corporation Law.

<d3.o n="3. " sec="[§3] ">Statutory Development.

<d3.o n="4. " sec="[§4] ">Authorities and Practice Works.

<d2.o n="B. ">General Corporation Law.

<d3.o n="1. " sec="[§5] ">Statutory Framework.

<d3.o n="2. " sec="[§6] ">General Provisions and Scope.

<d3.o n="3. " sec="[§7] ">Definitions.

<d3.o n="4. " sec="[§8] ">Prohibited Acts and Penalties.

<d2.o n="C. ">Disregard of Corporate Entity.

<d3.o n="1. ">In General.

<d4.o n="(a) " sec="[§9] ">Nature of Doctrine.

<d4.o n="(b) " sec="[§10] ">Test.

<d3.o n="2. ">Fraud or Other Wrongful Act.

<d4.o n="(a) " sec="[§11] ">Fraud Against Third Parties.

<d4.o n="(b) " sec="[§12] ">Evasion of Contractual Obligations.

<d4.o n="(c) " sec="[§13] ">Circumvention of Statute.

<d3.o n="3. " sec="[§14] ">Wholly Inadequate Capitalization.

<d3.o n="4. " sec="[§15] ">Liability of Parent for Obligations of Subsidiary.

<d3.o n="5. ">Original Business and Successor.

<d4.o n="(a) " sec="[§16] ">General Rule: Successor Liable for Predecessor''&apos;s Debts.

<d4.o n="(b) " sec="[§17] ">Exception: Good Faith Transfer for Adequate Consideration.

<d3.o n="6. " sec="[§18] ">Disregard at Instance of Corporation or Incorporators.

<d2.o n="D. ">Types of Corporations.

<d3.o n="1. " sec="[§19] ">De Facto and De Jure Corporations.

<d3.o n="2. " sec="[§20] ">Corporation by Estoppel.

<d3.o n="3. " sec="[§21] ">Public Corporations.

<d3.o n="4. " sec="[§22] ">Nonprofit Corporations.

<d3.o n="5. ">Corporations for Specific Purposes.

<d4.o n="(a) " sec="[§23] ">Cooperative Corporations.

<d4.o n="(b) " sec="[§24] ">Small Business Financial Development Corporations.

<d4.o n="(c) " sec="[§25] ">Other Special Types.

<d3.o n="6. ">Professional Corporations.

<d4.o n="(a) " sec="[§26] ">In General.

<d4.o n="(b) " sec="[§27] ">Authorized Professions.

<d4.o n="(c) " sec="[§28] ">Formation.

<d4.o n="(d) " sec="[§29] ">Operation and Regulation.

<d3.o n="7. ">Close Corporations.

<d4.o n="(a) " sec="[§30] ">Nature and Statutory Authorization.

<d4.o n="(b) " sec="[§31] ">Organization.

<d4.o n="(c) " sec="[§32] ">Agreement.

<d4.o n="(d) " sec="[§33] ">Transferring and Voting Shares.

<d4.o n="(e) " sec="[§34] ">Termination.

<d2.o n="E. ">Corporations Compared With Other Entities.

<d3.o n="1. " sec="[§35] ">Partnership.

<d3.o n="2. " sec="[§36] ">Limited Liability Company.

<d3.o n="3. ">Unincorporated Association.

<d4.o n="(a) " sec="[§37] ">In General.

<d4.o n="(b) " sec="[§38] ">Common Associations.

<d4.o n="(c) " sec="[§39] ">Entity Status.

<d4.o n="(d) " sec="[§40] ">Liability.

<d4.o n="(e) " sec="[§41] ">Control Over Members.

<d4.o n="(f) ">Rights and Remedies of Members.

<d5.o n="(1) " sec="[§42] ">Inspection of Records.

<d5.o n="(2) " sec="[§43] ">Judicial Remedies.

<d4.o n="(g) ">Admission to Membership.

<d5.o n="(1) ">Medical Society or Hospital Staff.

<d6.o n="(aa) " sec="[§44] ">In General.

<d6.o n="(bb) " sec="[§45] ">Fair Procedure Requirement.

<d5.o n="(2) " sec="[§46] ">Fraternal or Honorary Society.

<d4.o n="(h) " sec="[§47] ">Suspension or Expulsion.

<d4.o n="(i) " sec="[§47A] ">(New) Merger.

<d4.o n="(j) " sec="[§47B] ">(New) Dissolution.

<d3.o n="4. ">Business Trust.

<d4.o n="(a) " sec="[§48] ">Nature of Association.

<d4.o n="(b) " sec="[§49] ">Liability of Beneficiaries.

<d4.o n="(c) " sec="[§50] ">Liability of Trustees and Trust Estate.

<d4.o n="(d) " sec="[§51] ">Real Estate Investment Trust.

<d2.o n="F. ">Promoters.

<d3.o n="1. " sec="[§52] ">Nature and Function.

<d3.o n="2. " sec="[§53] ">Duty of Disclosure.

<d3.o n="3. " sec="[§54] ">Fraud Against Future Subscribers.

<d3.o n="4. " sec="[§55] ">Contracts.

<d1.o n="II. ">FORMATION OF CORPORATIONS

<d2.o n="A. " sec="[§56] ">In General.

<d2.o n="B. ">Articles of Incorporation.

<d3.o n="1. ">Required Provisions.

<d4.o n="(a) " sec="[§57] "> name.

<d4.o n="(b) " sec="[§58] ">Statement of Purpose and Agent for Service of Process.

<d4.o n="(c) " sec="[§59] ">Stock and Stock Preferences.

<d3.o n="2. ">Optional Provisions.

<d4.o n="(a) " sec="[§60] ">Provisions Permissible in Articles or Bylaws.

<d4.o n="(b) " sec="[§61] ">Provisions Ineffective Unless Included in Articles.

<d3.o n="3. " sec="[§62] ">Execution and Filing.

<d3.o n="4. ">Amendment of Articles.

<d4.o n="(a) " sec="[§63] ">Power To Amend.

<d4.o n="(b) " sec="[§64] ">Limitations on Amendment.

<d4.o n="(c) ">Certificate of Amendment.

<d5.o n="(1) " sec="[§65] ">Amendment Before Shares Are Issued.

<d5.o n="(2) " sec="[§66] ">Amendment After Shares Are Issued.

<d5.o n="(3) " sec="[§67] ">Establishing Wording of Amendment.

<d5.o n="(4) " sec="[§68] ">Filing.

<d4.o n="(d) ">Required Votes.

<d5.o n="(1) " sec="[§69] ">Before Issuance of Shares.

<d5.o n="(2) " sec="[§70] ">After Issuance of Shares.

<d5.o n="(3) " sec="[§71] ">Amendments Having Adverse Effect.

<d4.o n="(e) " sec="[§72] ">Restating Articles.

<d2.o n="C. ">Bylaws.

<d3.o n="1. " sec="[§73] ">Adoption and Amendment.

<d3.o n="2. " sec="[§74] ">Provisions.

<d2.o n="D. " sec="[§75] ">Annual Statement.

<d2.o n="E. " sec="[§76] ">Agent for Service of Process.

<d2.o n="F. " sec="[§77] ">Certificate of Correction.

<d1.o n="III. ">DIRECTORS AND OFFICERS

<d2.o n="A. ">In General.

<d3.o n="1. " sec="[§78] ">Qualifications, Term, and Election.

<d3.o n="2. " sec="[§79] ">Resignation and Removal.

<d3.o n="3. " sec="[§80] ">Compensation.

<d3.o n="4. ">Indemnification.

<d4.o n="(a) " sec="[§81] ">Nature and Scope of Statute.

<d4.o n="(b) ">Conditions Justifying Indemnification.

<d5.o n="(1) " sec="[§82] ">Agent Successful on Merits.

<d5.o n="(2) " sec="[§83] ">Actions on Behalf of Corporation and Other Proceedings.

<d5.o n="(3) " sec="[§84] ">Authorization Required for Indemnification.

<d3.o n="5. " sec="[§85] ">Right of Inspection.

<d2.o n="B. ">Meetings and Board Action.

<d3.o n="1. " sec="[§86] ">Exercise of Corporate Powers.

<d3.o n="2. " sec="[§87] ">Calling and Noticing Meetings.

<d3.o n="3. " sec="[§88] ">Transaction of Business.

<d3.o n="4. " sec="[§89] ">Provisional Director To Break Deadlock.

<d2.o n="C. ">Fiduciary Relationship of Directors.

<d3.o n="1. ">Relations With Corporation.

<d4.o n="(a) " sec="[§90] ">Personal Profits.

<d4.o n="(b) ">Competition.

<d5.o n="(1) " sec="[§91] ">Doctrine of Corporate Opportunities.

<d5.o n="(2) " sec="[§92] ">Inducing Employees To Join Competitor.

<d4.o n="(c) ">Transactions Between Director and Corporation.

<d5.o n="(1) " sec="[§93] ">Test of Validity.

<d5.o n="(2) " sec="[§94] ">Fraud or Unfairness.

<d5.o n="(3) " sec="[§95] ">Contract Fixing Compensation.

<d5.o n="(4) " sec="[§96] ">Golden Parachute.

<d4.o n="(d) " sec="[§97] ">Delegation of Functions or Surrender of Control.

<d3.o n="2. ">Relations With Shareholders.

<d4.o n="(a) " sec="[§98] ">In General.

<d4.o n="(b) ">Duty of Disclosure.

<d5.o n="(1) " sec="[§99] ">Special Facts.

<d5.o n="(2) " sec="[§100] ">Other Situations.

<d2.o n="D. ">Liabilities of Directors.

<d3.o n="1. " sec="[§101] ">Unauthorized Distributions, Loans, and Guaranties.

<d3.o n="2. ">Negligence, Mismanagement, and Fraud.

<d4.o n="(a) " sec="[§102] ">In General.

<d4.o n="(b) " sec="[§103] ">Reliance on Information Provided by Others.

<d4.o n="(c) " sec="[§104] ">Sanctions for Misrepresentation or Fraud.

<d3.o n="3. " sec n ="105">Acts of Other Directors or Officers.

<d3.o n="4. " sec="[§105] ">Intentional Tort.

<d3.o n="5. " sec="[§106] ">Limitation on Liability of Directors.

<d2.o n="E. ">Other Officers and Agents.

<d3.o n="1. " sec="[§107] ">In General.

<d3.o n="2. ">Authority To Bind Corporation.

<d4.o n="(a) " sec="[§108] ">In General.

<d4.o n="(b) " sec="[§109] ">Implied Authority of Executive Officers.

<d4.o n="(c) " sec="[§110] ">Signatures on Written Instruments.

<d2.o n="F. " sec="[§111] ">De Facto Directors and Officers.

<d1.o n="IV. ">CORPORATE POWERS

<d2.o n="A. " sec="[§112] ">In General.

<d2.o n="B. ">Distributions to Shareholders.

<d3.o n="1. " sec="[§113] ">In General.

<d3.o n="2. " sec="[§114] ">Redemption.

<d2.o n="C. ">Gift or Loan of Assets or Credit.

<d3.o n="1. " sec="[§115] ">Gifts and Contributions to Charity and Education.

<d3.o n="2. " sec="[§116] ">Political Contributions for Business Purpose.

<d3.o n="3. " sec="[§117] ">Lending Credit.

<d3.o n="4. " sec="[§118] ">Loans or Guaranties to Directors or Officers.

<d2.o n="D. " sec="[§119] ">Transfer of All Assets.

<d2.o n="E. ">Ultra Vires Acts.

<d3.o n="1. " sec="[§120] ">Doctrine Abolished as to Third Parties.

<d3.o n="2. " sec="[§121] ">Rights of Corporation and Shareholders.

<d3.o n="3. " sec="[§122] ">Illegal and Fraudulent Acts.

<d1.o n="V. ">SHARES OF STOCK

<d2.o n="A. ">In General.

<d3.o n="1. " sec="[§123] ">What Constitutes Share.

<d3.o n="2. " sec="[§124] ">Classes and Preferences.

<d3.o n="3. " sec="[§125] ">Valuation and Payment.

<d3.o n="4. " sec="[§126] ">Certificates of Stock.

<d3.o n="5. " sec="[§127] ">Preincorporation Subscription Agreements.

<d3.o n="6. " sec="[§128] ">Securities Regulation.

<d2.o n="B. ">Transfer of Shares.

<d3.o n="1. " sec="[§129] ">Valid Restrictions.

<d3.o n="2. " sec="[§130] ">Statement on Certificate.

<d3.o n="3. " sec="[§131] ">Authorized Transfers.

<d2.o n="C. ">Investment Securities Under Commercial Code.

<d3.o n="1. ">In General.

<d4.o n="(a) " sec="[§132] ">Statutory Development.

<d4.o n="(b) " sec="[§133] ">Scope of Code.

<d4.o n="(c) " sec="[§134] ">Securities Defined.

<d4.o n="(d) " sec="[§135] ">Statute of Frauds.

<d4.o n="(e) " sec="[§136] ">Choice of Law.

<d3.o n="2. " sec="[§137] ">Issue and Issuer.

<d3.o n="3. ">Transfer of Securities.

<d4.o n="(a) " sec="[§138] ">Delivery.

<d4.o n="(b) " sec="[§139] ">Warranties.

<d3.o n="4. " sec="[§140] ">Rights of Purchaser.

<d3.o n="5. " sec="[§141] ">Rights of Creditors.

<d3.o n="6. ">Registration.

<d4.o n="(a) " sec="[§142] ">Rights of Owner and Purchaser.

<d4.o n="(b) " sec="[§143] ">Duty of Issuer To Register.

<d4.o n="(c) " sec="[§144] ">Duty of Issuer To Replace Lost Security.

<d4.o n="(d) " sec="[§145] ">Liabilities of Issuer.

<d4.o n="(e) " sec="[§146] ">Agent for Issuer.

<d3.o n="7. ">Security Entitlements.

<d4.o n="(a) " sec="[§147] ">In General.

<d4.o n="(b) " sec="[§148] ">Property Interest of Entitlement Holder.

<d4.o n="(c) " sec="[§149] ">Duties of Securities Intermediary.

<d1.o n="VI. ">SHAREHOLDERS

<d2.o n="A. ">In General.

<d3.o n="1. " sec="[§150] ">Shareholders of Record.

<d3.o n="2. " sec="[§151] ">Nature of Rights.

<d3.o n="3. " sec="[§152] ">Inspection of Records.

<d3.o n="4. " sec="[§153] ">Annual Report and Financial Statement.

<d3.o n="5. " sec="[§154] ">Recovery for Wrongfully Induced Retention of Shares.

<d2.o n="B. ">Meetings and Elections.

<d3.o n="1. " sec="[§155] ">Time and Place.

<d3.o n="2. " sec="[§156] ">Notice and Waiver.

<d3.o n="3. " sec="[§157] ">Quorum.

<d3.o n="4. " sec="[§158] ">Notification of Results.

<d2.o n="C. ">Voting.

<d3.o n="1. ">In General.

<d4.o n="(a) " sec="[§159] ">Shareholders of Record.

<d4.o n="(b) " sec="[§160] ">Fiduciaries.

<d4.o n="(c) " sec="[§161] ">Shares Held by Another Corporation.

<d3.o n="2. " sec="[§162] ">Cumulative Voting.

<d3.o n="3. ">Proxies.

<d4.o n="(a) " sec="[§163] ">Validity and Duration.

<d4.o n="(b) " sec="[§164] ">Regulation of Solicitation.

<d3.o n="4. " sec="[§165] ">Voting Agreements and Trusts.

<d2.o n="D. ">Dividends.

<d3.o n="1. " sec="[§166] ">Nature and Kinds of Dividends.

<d3.o n="2. " sec="[§167] ">Discretion of Directors.

<d3.o n="3. " sec="[§168] ">Ownership of Dividend: Time of Declaration.

<d3.o n="4. " sec="[§169] ">Rights of Preferred Shareholders.

<d2.o n="E. ">Derivative Suits.

<d3.o n="1. " sec="[§170] ">In General.

<d3.o n="2. " sec="[§171] ">Contemporary Ownership Requirement.

<d3.o n="3. " sec="[§172] ">Demand on Directors To Act.

<d3.o n="4. ">Personal Action by Shareholder.

<d4.o n="(a) " sec="[§173] ">Joinder.

<d4.o n="(b) " sec="[§174] ">Action Based on Fraud.

<d4.o n="(c) " sec="[§175] ">Action by Insured Shareholder.

<d3.o n="5. ">Security for Costs.

<d4.o n="(a) " sec="[§176] ">Nature of Statute.

<d4.o n="(b) " sec="[§177] ">Statute Is Not Applicable to Personal Action.

<d3.o n="6. " sec="[§178] ">Compromise, Dismissal, and Appeal.

<d3.o n="7. " sec="[§179] ">Attorneys''&apos; Fees to Plaintiff.

<d2.o n="F. ">Fiduciary Obligations of Controlling Shareholders.

<d3.o n="1. " sec="[§180] ">General Principle.

<d3.o n="2. " sec="[§181] ">Illustrations.

<d2.o n="G. ">Liability of Shareholders to Corporation.

<d3.o n="1. " sec="[§182] ">Calls on Partly Paid Shares.

<d3.o n="2. " sec="[§183] ">Assessment Under Stated Power.

<d3.o n="3. " sec="[§184] ">Unlawful Dividends or Purchases of Shares.

<d2.o n="H. ">Liability of Shareholders to Creditors.

<d3.o n="1. " sec="[§185] ">Partly Paid Shares.

<d3.o n="2. " sec="[§186] ">Fraud and Watered Stock.

<d1.o n="VII. ">REORGANIZATION

<d2.o n="A. ">Types of Reorganizations.

<d3.o n="1. " sec="[§187] ">Merger Reorganization.

<d3.o n="2. " sec="[§188] ">Exchange Reorganization.

<d3.o n="3. " sec="[§189] ">Sale-of-Assets Reorganization.

<d3.o n="4. " sec="[§190] ">Readjustment To Eliminate Arrearages.

<d3.o n="5. " sec="[§191] ">Bankruptcy Reorganizations.

<d2.o n="B. " sec="[§192] ">Board Approval.

<d2.o n="C. ">Shareholder Approval.

<d3.o n="1. " sec="[§193] ">When Not Required.

<d3.o n="2. " sec="[§194] ">When Required.

<d3.o n="3. " sec="[§195] ">Voting and Appraisal Rights.

<d2.o n="D. ">Merger Procedure.

<d3.o n="1. " sec="[§196] ">Merger Agreement.

<d3.o n="2. " sec="[§197] ">Filing and Effective Date.

<d3.o n="3. " sec="[§198] ">Rights and Liabilities of Constituent Corporations.

<d3.o n="4. " sec="[§199] "> name and Ownership of Real Property.

<d2.o n="E. ">Dissenting Shareholders''&apos; Rights.

<d3.o n="1. " sec="[§200] ">In General.

<d3.o n="2. " sec="[§201] ">Conditions and Restrictions.

<d3.o n="3. " sec="[§202] ">Determining Value of Shares.

<d3.o n="4. " sec="[§203] ">Shareholder''&apos;s Election.

<d3.o n="5. " sec="[§204] ">Appraisal Right as Exclusive Remedy.

<d2.o n="F. " sec="[§205] ">Abandonment.

<d2.o n="G. ">Conversion.

<d3.o n="1. " sec="[§206] ">In General.

<d3.o n="2. " sec="[§207] ">Plan.

<d3.o n="3. " sec="[§208] ">Statement of Conversion.

<d3.o n="4. " sec="[§209] ">Effect.

<d3.o n="5. " sec="[§210] ">Record Ownership of Real Property.

<d1.o n="VIII. ">DISSOLUTION AND FORFEITURE

<d2.o n="A. ">Dissolution.

<d3.o n="1. ">In General.

<d4.o n="(a) " sec="[§211] ">Methods of Dissolution.

<d4.o n="(b) " sec="[§212] ">Corporate Existence Continues.

<d3.o n="2. ">Voluntary Dissolution.

<d4.o n="(a) " sec="[§213] ">Without Court Proceedings.

<d4.o n="(b) " sec="[§214] ">Control by Court.

<d3.o n="3. ">Involuntary Dissolution.

<d4.o n="(a) " sec="[§215] ">Parties.

<d4.o n="(b) " sec="[§216] ">Grounds.

<d4.o n="(c) " sec="[§217] ">Procedure.

<d4.o n="(d) " sec="[§218] ">Election To Purchase Shares.

<d3.o n="4. ">Distributions and Orders.

<d4.o n="(a) " sec="[§219] ">Distribution to Shareholders.

<d4.o n="(b) " sec="[§220] ">Creditors''&apos; Rights Against Former Shareholders.

<d4.o n="(c) " sec="[§221] ">Certificates and Orders.

<d2.o n="B. ">Forfeiture for Failure To Pay Franchise Tax.

<d3.o n="1. " sec="[§222] ">Effect on Contracts and Conveyances.

<d3.o n="2. " sec="[§223] ">Effect on Actions.

<d3.o n="3. " sec="[§224] ">Penalties and Loss of Corporate Name.

<d3.o n="4. " sec="[§225] ">Revivor by Payment of Back Taxes.

<d1.o n="IX. ">FOREIGN CORPORATIONS

<d2.o n="A. ">Right To Do Business.

<d3.o n="1. " sec="[§226] ">State''&apos;s Power To Impose Conditions.

<d3.o n="2. " sec="[§227] ">Definitions and Governing Statute.

<d3.o n="3. " sec="[§228] ">Certificate of Qualification.

<d3.o n="4. " sec="[§229] ">Penalties for Failure To Comply.

<d3.o n="5. " sec="[§230] ">Surrender of Right To Transact Intrastate Business.

<d3.o n="6. " sec="[§231] ">Service of Process.

<d3.o n="7. " sec="[§232] ">Foreign Corporation Not Transacting Intrastate Business.

<d3.o n="8. " sec="[§233] ">Activities of Foreign Lending Institution.

<d2.o n="B. ">Conflict of Laws.

<d3.o n="1. " sec="[§234] ">Formation of Corporation.

<d3.o n="2. " sec="[§235] ">Dissolution of Corporation.

<d3.o n="3. " sec="[§236] ">Qualifying To Do Business.

<d3.o n="4. " sec="[§237] ">Corporate Powers and Liabilities.

<d3.o n="5. " sec="[§238] ">Shareholders, Directors, and Officers.

<d3.o n="6. " sec="[§239] ">Internal Affairs.

<d2.o n="C. ">Quasi-Foreign Corporations.

<d3.o n="1. " sec="[§240] ">In General.

<d3.o n="2. " sec="[§241] ">Constitutionality of Statute.

<d3.o n="3. " sec="[§242] ">Affected Corporations.

<d3.o n="4. " sec="[§243] ">Excluded Corporations.

<d3.o n="5. " sec="[§244] ">Applicable Provisions.

<d1.o n="X. ">NONPROFIT CORPORATIONS

<d2.o n="A. ">In General.

<d3.o n="1. " sec="[§245] ">Nature and Organization.

<d3.o n="2. ">Nonprofit Corporation Law.

<d4.o n="(a) " sec="[§246] ">In General.

<d4.o n="(b) ">General Provisions and Definitions.

<d5.o n="(1) " sec="[§247] ">In General.

<d5.o n="(2) " sec="[§248] ">Filing Requirements.

<d5.o n="(3) " sec="[§249] ">Notice and Mailing.

<d5.o n="(4) " sec="[§250] ">Approval by Board or Members.

<d2.o n="B. ">Nonprofit Public Benefit Corporations.

<d3.o n="1. " sec="[§251] ">Statutory Citation and Scope.

<d3.o n="2. ">Organization and Powers.

<d4.o n="(a) " sec="[§252] ">Authorized Purposes.

<d4.o n="(b) " sec="[§253] ">Formation.

<d4.o n="(c) " sec="[§254] ">Corporate Name.

<d4.o n="(d) " sec="[§255] ">Incorporation of Existing Association.

<d4.o n="(e) " sec="[§256] ">Statutory Powers.

<d4.o n="(f) " sec="[§257] ">Raising Limitations on Powers.

<d3.o n="3. ">Articles and Bylaws.

<d4.o n="(a) " sec="[§258] ">Contents of Articles.

<d4.o n="(b) ">Amendment and Restatement of Articles.

<d5.o n="(1) " sec="[§259] ">In General.

<d5.o n="(2) " sec="[§260] ">Amendment To Change Corporate Status.

<d5.o n="(3) " sec="[§261] ">Amendment To Extend Term of Corporate Existence.

<d5.o n="(4) " sec="[§262] ">Who Must Approve Amendment.

<d5.o n="(5) " sec="[§263] ">Certificate of Amendment.

<d5.o n="(6) " sec="[§264] ">Restated Articles.

<d4.o n="(c) " sec="[§265] ">Adoption, Amendment, and Repeal of Bylaws.

<d4.o n="(d) " sec="[§266] ">Contents of Bylaws.

<d4.o n="(e) " sec="[§267] ">Location and Inspection of Articles and Bylaws.

<d3.o n="4. ">Selection, Resignation, and Removal of Directors.

<d4.o n="(a) " sec="[§268] ">Method of Selection and Term.

<d4.o n="(b) " sec="[§269] ">Restrictions on Interested Persons as Directors.

<d4.o n="(c) ">Election.

<d5.o n="(1) " sec="[§270] ">In General.

<d5.o n="(2) " sec="[§271] ">Nomination Procedure.

<d5.o n="(3) " sec="[§272] ">Solicitation Materials.

<d5.o n="(4) " sec="[§273] ">Cumulative Voting.

<d4.o n="(d) " sec="[§274] ">Action To Determine Validity of Selection.

<d4.o n="(e) " sec="[§275] ">Resignation.

<d4.o n="(f) ">Removal.

<d5.o n="(1) " sec="[§276] ">In General.

<d5.o n="(2) " sec="[§277] ">Without Cause.

<d4.o n="(g) " sec="[§278] ">Vacancies.

<d4.o n="(h) " sec="[§279] ">Provisional Directors.

<d3.o n="5. ">Management of Corporate Affairs.

<d4.o n="(a) " sec="[§280] ">Exercise and Delegation of Corporate Powers.

<d4.o n="(b) " sec="[§281] ">Corporate Officers.

<d4.o n="(c) " sec="[§282] ">Committees.

<d4.o n="(d) ">Meetings.

<d5.o n="(1) " sec="[§283] ">In General.

<d5.o n="(2) " sec="[§284] ">Transaction of Business.

<d5.o n="(3) " sec="[§285] ">Alternative Procedure Authorized by Court.

<d4.o n="(e) " sec="[§286] ">Investments.

<d4.o n="(f) " sec="[§287] ">Supervision by Attorney General.

<d4.o n="(g) " sec="[§288] ">Compliance With Internal Revenue Code.

<d4.o n="(h) " sec="[§289] ">Distributions to Members Prohibited.

<d4.o n="(i) " sec="[§290] ">Transactions Involving Corporate Assets.

<d4.o n="(j) " sec="[§291] ">Service of Process.

<d3.o n="6. ">Standards for Conducting Corporate Affairs.

<d4.o n="(a) " sec="[§292] ">Scope of Statutory Requirements.

<d4.o n="(b) " sec="[§293] ">Good Faith Performance of Duties by Directors.

<d4.o n="(c) ">Self-Dealing by Interested Directors.

<d5.o n="(1) " sec="[§294] ">In General.

<d5.o n="(2) " sec="[§295] ">Conditions Precluding Remedies Against Interested Directors.

<d4.o n="(d) " sec="[§296] ">Transactions Between Entities With Common Directors.

<d4.o n="(e) " sec="[§297] ">Determining Compensation.

<d4.o n="(f) " sec="[§298] ">Loans or Guaranties to Directors or Officers.

<d4.o n="(g) ">Liability for Improper Actions.

<d5.o n="(1) " sec="[§299] ">Scope of Liability.

<d5.o n="(2) " sec="[§300] ">Action To Enforce Liability.

<d4.o n="(h) ">Indemnification.

<d5.o n="(1) " sec="[§301] ">In General.

<d5.o n="(2) " sec="[§302] ">Conditions Justifying Indemnification.

<d3.o n="7. ">Members.

<d4.o n="(a) " sec="[§303] ">Definitions.

<d4.o n="(b) " sec="[§304] ">Issuance of Memberships.

<d4.o n="(c) " sec="[§305] ">Transfer of Memberships.

<d4.o n="(d) ">Termination of Memberships.

<d5.o n="(1) " sec="[§306] ">In General.

<d5.o n="(2) " sec="[§307] ">Procedural Requirements.

<d4.o n="(e) " sec="[§308] ">Liability.

<d4.o n="(f) ">Meetings and Voting.

<d5.o n="(1) " sec="[§309] ">In General.

<d5.o n="(2) " sec="[§310] ">Notice.

<d5.o n="(3) " sec="[§311] ">Quorum.

<d5.o n="(4) " sec="[§312] ">Determining Members of Record.

<d5.o n="(5) " sec="[§313] ">Written Ballot in Lieu of Meeting.

<d5.o n="(6) " sec="[§314] ">Voting Rights.

<d5.o n="(7) " sec="[§315] ">Proxies.

<d5.o n="(8) " sec="[§316] ">Election Inspectors.

<d5.o n="(9) " sec="[§317] ">Waiver of Procedural Errors.

<d5.o n="(10) " sec="[§318] ">Alternative Procedure Authorized by Court.

<d5.o n="(11) " sec="[§319] ">Acceptability of Signatures.

<d4.o n="(g) ">Derivative Actions.

<d5.o n="(1) " sec="[§320] ">In General.

<d5.o n="(2) " sec="[§321] ">Plaintiff''&apos;s Bond.

<d3.o n="8. ">Mergers.

<d4.o n="(a) " sec="[§322] ">In General.

<d4.o n="(b) " sec="[§323] ">Merger Agreement.

<d4.o n="(c) " sec="[§324] ">Required Filings.

<d4.o n="(d) " sec="[§325] ">Merger With Foreign Corporation.

<d4.o n="(e) " sec="[§326] ">Effect of Merger.

<d3.o n="9. ">Records and Reporting Requirements.

<d4.o n="(a) " sec="[§327] ">In General.

<d4.o n="(b) " sec="[§328] ">Annual Report.

<d4.o n="(c) " sec="[§329] ">Statement of Indemnifications and Insider Transactions.

<d4.o n="(d) " sec="[§330] ">Filing With Secretary of State.

<d4.o n="(e) " sec="[§331] ">Reports to Other Public Officers.

<d4.o n="(f) ">Liability for False or Deceptive Acts.

<d5.o n="(1) " sec="[§332] ">Civil Liability.

<d5.o n="(2) " sec="[§333] ">Criminal Liability.

<d3.o n="10. . ">Inspection Rights.

<d4.o n="(a) " sec="[§334] ">In General.

<d4.o n="(b) ">Membership List.

<d5.o n="(1) " sec="[§335] ">Demand for Inspection.

<d5.o n="(2) " sec="[§336] ">Court Order Limiting Inspection.

<d5.o n="(3) " sec="[§337] ">Setting Aside Inspection Demand.

<d5.o n="(4) " sec="[§338] ">Enforcement of Inspection Rights.

<d5.o n="(5) " sec="[§339] ">Improper Use of List.

<d3.o n="11. ">Dissolution.

<d4.o n="(a) ">Involuntary Dissolution.

<d5.o n="(1) " sec="[§340] ">Grounds.

<d5.o n="(2) " sec="[§341] ">Filing Complaint.

<d5.o n="(3) " sec="[§342] ">Court Orders and Jurisdiction.

<d5.o n="(4) " sec="[§343] ">Action by Attorney General.

<d5.o n="(5) " sec="[§344] ">Corporate Activities.

<d5.o n="(6) " sec="[§345] ">Presentation and Payment of Claims.

<d5.o n="(7) " sec="[§346] ">Order for Dissolution.

<d4.o n="(b) ">Voluntary Dissolution.

<d5.o n="(1) " sec="[§347] ">Who Must Approve.

<d5.o n="(2) " sec="[§348] ">Certificate of Election.

<d5.o n="(3) " sec="[§349] ">Revocation of Election.

<d5.o n="(4) " sec="[§350] ">Corporate Activities.

<d5.o n="(5) " sec="[§351] ">Court Jurisdiction.

<d5.o n="(6) " sec="[§352] ">Certificate of Dissolution.

<d5.o n="(7) " sec="[§353] ">Order for Dissolution.

<d4.o n="(c) ">Common Provisions Relating to Dissolution.

<d5.o n="(1) " sec="[§354] ">In General.

<d5.o n="(2) " sec="[§355] ">Providing for Debts and Liabilities.

<d5.o n="(3) " sec="[§356] ">Distribution of Assets.

<d5.o n="(4) " sec="[§357] ">Effect of Dissolution.

<d2.o n="C. ">Mutual Benefit Corporations.

<d3.o n="1. " sec="[§358] ">Statutory Citation and Scope.

<d3.o n="2. " sec="[§359] ">Authorized Purposes.

<d3.o n="3. " sec="[§360] ">Organization and Powers.

<d3.o n="4. ">Articles and Bylaws.

<d4.o n="(a) " sec="[§361] ">Contents and Construction of Articles.

<d4.o n="(b) " sec="[§362] ">Amendment of Articles.

<d4.o n="(c) " sec="[§363] ">Bylaws.

<d3.o n="5. " sec="[§364] ">Selection of Directors.

<d3.o n="6. " sec="[§365] ">Resignation and Removal of Directors.

<d3.o n="7. " sec="[§366] ">Management of Corporate Affairs.

<d3.o n="8. " sec="[§367] ">Restrictions on Corporate Distributions.

<d3.o n="9. ">Standards for Conducting Corporate Affairs.

<d4.o n="(a) " sec="[§368] ">In General.

<d4.o n="(b) " sec="[§369] ">Self-Dealing by Interested Directors.

<d4.o n="(c) " sec="[§370] ">Loans or Guaranties to Directors or Officers.

<d3.o n="10. . ">Members.

<d4.o n="(a) " sec="[§371] ">Issuance of Memberships.

<d4.o n="(b) " sec="[§372] ">Transfer and Termination of Memberships.

<d4.o n="(c) " sec="[§373] ">Liability.

<d4.o n="(d) " sec="[§374] ">Meetings and Voting.

<d4.o n="(e) " sec="[§375] ">Derivative Actions.

<d3.o n="11. " sec="[§376] ">Mergers.

<d3.o n="12. " sec="[§377] ">Records and Reporting Requirements.

<d3.o n="13. " sec="[§378] ">Inspection Rights.

<d3.o n="14. ">Dissolutions.

<d4.o n="(a) " sec="[§379] ">In General.

<d4.o n="(b) " sec="[§380] ">Involuntary Dissolution.

<d4.o n="(c) " sec="[§381] ">Voluntary Dissolution.

<d2.o n="D. ">Religious Benefit Corporations.

<d3.o n="1. " sec="[§382] ">Statutory Citation and Scope.

<d3.o n="2. " sec="[§383] ">Organization and Purposes.

<d3.o n="3. " sec="[§384] ">Corporate Powers.

<d3.o n="4. " sec="[§385] ">Articles.

<d3.o n="5. " sec="[§386] ">Bylaws.

<d3.o n="6. " sec="[§387] ">Selection of Directors.

<d3.o n="7. " sec="[§388] ">Resignation and Removal of Directors.

<d3.o n="8. " sec="[§389] ">Management of Corporate Affairs.

<d3.o n="9. " sec="[§390] ">Examination by Attorney General.

<d3.o n="10. . ">Standards for Conducting Corporate Affairs.

<d4.o n="(a) " sec="[§391] ">In General.

<d4.o n="(b) " sec="[§392] ">Self-Dealing by Interested Directors.

<d3.o n="11. ">Members.

<d4.o n="(a) " sec="[§393] ">Membership Rights and Liabilities.

<d4.o n="(b) " sec="[§394] ">Meetings and Voting.

<d3.o n="12. " sec="[§395] ">Records and Reporting Requirements.

<d3.o n="13. " sec="[§396] ">Mergers.

<d3.o n="14. " sec="[§397] ">Dissolution.

<d3.o n="15. " sec="[§398] ">Crimes and Penalties.

<d2.o n="E. ">Corporations for Special Purposes.

<d3.o n="1. " sec="[§399] ">Corporations Sole.

<d3.o n="2. " sec="[§400] ">Other Special Corporations.

<d1.o n="XI. ">CORPORATE SECURITIES LAW OF 1968

<d2.o n="A. ">In General.

<d3.o n="1. " sec="[§401] ">Former Law and Revision.

<d3.o n="2. " sec="[§402] ">Major Components.

<d3.o n="3. " sec="[§403] ">Commissioner, Rules, and Forms.

<d3.o n="4. " sec="[§404] ">Definitions and General Provisions.

<d2.o n="B. ">Qualification of Sale or Offer of Securities.

<d3.o n="1. ">In General.

<d4.o n="(a) " sec="[§405] ">Theories and Classifications.

<d4.o n="(b) ">Securities.

<d5.o n="(1) " sec="[§406] ">Application of Former Law.

<d5.o n="(2) " sec="[§407] ">Interests Included.

<d5.o n="(3) " sec="[§408] ">Interests Excluded.

<d5.o n="(4) " sec="[§409] ">Valid Business Ventures.

<d4.o n="(c) " sec="[§410] ">Sale or Offer To Sell.

<d4.o n="(d) " sec="[§411] ">Sale or Offer in California.

<d4.o n="(e) ">Standards for Qualification.

<d5.o n="(1) " sec="[§412] ">Issuer Transactions.

<d5.o n="(2) " sec="[§413] ">Nonissuer Transactions.

<d5.o n="(3) " sec="[§414] ">Recapitalizations and Reorganizations.

<d3.o n="2. ">Transactions Covered.

<d4.o n="(a) " sec="[§415] ">Issuer and Nonissuer Transactions.

<d4.o n="(b) " sec="[§416] ">Recapitalizations and Reorganizations.

<d3.o n="3. ">Exemption of Securities.

<d4.o n="(a) " sec="[§417] ">Securities Entirely Exempt.

<d4.o n="(b) " sec="[§418] ">Securities Exempt From Nonissuer Requirements.

<d3.o n="4. ">Exemption of Transactions.

<d4.o n="(a) ">Transactions Exempt From Issuer Requirements.

<d5.o n="(1) " sec="[§419] ">Offers and Sales by Small Corporations.

<d5.o n="(2) " sec="[§420] ">Offers and Sales to Institutional Investors.

<d5.o n="(3) " sec="[§421] ">Miscellaneous Specific Exemptions.

<d4.o n="(b) " sec="[§422] ">Transactions Exempt From Issuer, Recapitalization, and Reorganization Requirements.

<d4.o n="(c) " sec="[§423] ">Transactions Exempt From Nonissuer Requirements.

<d4.o n="(d) " sec="[§424] ">Transactions Exempt by Commissioner''&apos;s Rule.

<d3.o n="5. ">Procedure for Qualification.

<d4.o n="(a) " sec="[§425] ">In General.

<d4.o n="(b) ">Particular Transactions.

<d5.o n="(1) " sec="[§426] ">Issuer Transactions.

<d5.o n="(2) " sec="[§427] ">Nonissuer Transactions.

<d5.o n="(3) " sec="[§428] ">Recapitalizations and Reorganizations.

<d4.o n="(c) ">Authority of Commissioner.

<d5.o n="(1) " sec="[§429] ">Denial of Permit.

<d5.o n="(2) " sec="[§430] ">Stop Order.

<d5.o n="(3) " sec="[§431] ">Conditions of Qualification.

<d5.o n="(4) " sec="[§432] ">Reports and Records.

<d5.o n="(5) " sec="[§433] ">Miscellaneous Powers.

<d2.o n="C. ">Regulation of Agents, Broker-Dealers, and Investment Advisers.

<d3.o n="1. ">Licensing of Broker-Dealers.

<d4.o n="(a) " sec="[§434] ">In General.

<d4.o n="(b) " sec="[§435] ">Certificate.

<d4.o n="(c) " sec="[§436] ">Particular Transactions.

<d3.o n="2. ">Licensing of Investment Advisers.

<d4.o n="(a) " sec="[§437] ">In General.

<d4.o n="(b) " sec="[§438] ">Certificate.

<d4.o n="(c) " sec="[§439] ">Investment Advisory Contract.

<d3.o n="3. " sec="[§440] ">Discontinuance of Activities and Administrative Penalties.

<d2.o n="D. ">Advertising Securities.

<d3.o n="1. " sec="[§441] ">Filing Copy Before Publication.

<d3.o n="2. " sec="[§442] ">Notice Not To Publish.

<d2.o n="E. ">Fraudulent and Prohibited Practices.

<d3.o n="1. " sec="[§443] ">Creating False Market.

<d3.o n="2. " sec="[§444] ">Fraud or Misrepresentation in Purchase or Sale.

<d3.o n="3. " sec="[§445] ">Purchase or Sale by Insider.

<d3.o n="4. " sec="[§446] ">Sale of Securities Not Qualified.

<d3.o n n="5. . " sec.n n="447">Assisting in Violation or Obstruction of Enforcement.

<d3.o n="6. " sec="[§448] ">Offer or Sale of Fractional Interest of Local Agency Obligation.

<d2.o n="F. ">Enforcement.

<d3.o n="1. ">Civil Liability.

<d4.o n="(a) " sec="[§449] ">In General.

<d4.o n="(b) " sec="[§450] ">Statute of Limitations.

<d3.o n="2. ">Powers of Commissioner.

<d4.o n="(a) " sec="[§451] ">Actions.

<d4.o n="(b) " sec="[§452] ">Investigations.

<d4.o n="(c) " sec="[§453] ">Order To Desist and Restrictions on Sale.

<d3.o n="3">Criminal Prosecution.

<d4.o n="(a) " sec="[§454] ">In General.

<d4.o n="(b) " sec="[§455] ">Burden of Proof on Exemption.

<d1.o n="XII. ">RELATED INVESTMENT LAWS

<d2.o n="A. ">Franchise Investment Law.

<d3.o n="1. " sec="[§456] ">In General.

<d3.o n="2. " sec="[§457] ">Franchises Regulated.

<d3.o n="3. " sec="[§458] ">Exemptions.

<d3.o n="4. " sec="[§459] ">Regulatory Provisions.

<d2.o n="B. ">Capital Access Company Law.

<d3.o n="1. " sec="[§460] ">In General.

<d3.o n="2. " sec="[§461] ">Licensing.

<d3.o n="3. " sec="[§462] ">Organization.

<d3.o n="4. " sec="[§463] ">Nature and Scope of Business.

<d3.o n="5. " sec="[§464] ">Ownership.

<d2.o n="C. " sec="[§465] ">California Commodity Law of 1990.

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