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.