Source: https://corporations.uslegal.com/professional-corporation/california-professional-corporations-for-doctors-law/
Timestamp: 2020-07-07 03:55:31
Document Index: 509405614

Matched Legal Cases: ['§13400', '§ 2000', '§13400', '§13401', '§201', '§201', '§ 2000', '§ 13401', '§ 2000', '§ 13401', '§ 2000']

California Professional Corporations for Doctors Law – Corporations
California Professional Corporations for Doctors Law
CALIFORNIA CORPORATIONS CODE, §§13400-13410 (Moscone-Knox Professional Corporation Act CALIFORNIA BUSINESS AND PROFESSIONS CODE, §§ 2000-2521 (Medicine)
CALIFORNIA CORPORATIONS CODE,
§§13400-13410 (Moscone-Knox Professional Corporation Act)
“Professional services” are any type of professional services that may be lawfully rendered only pursuant to a license, certification, or registration authorized by the Business and Professions Code, the Chiropractic Act, or the Osteopathic Act.
A “professional corporation” is a corporation organized under the General Corporation Law or the Moscone-Knox Professional Corporation Act and that is engaged in rendering professional services in a single profession (except as otherwise authorized in §13401.5) pursuant to a certificate of registration issued by the governmental agency regulating the profession and that in its practice or business designates itself as a professional or other corporation as may be required by statute. However, any professional corporation rendering professional services by persons duly licensed by the Medical Board of California, or any examining committee under the jurisdiction of the board, is not required to obtain a certificate of registration in order to render those professional services.
The following licensed persons may be shareholders, officers, directors, or professional employees of a professional medical corporation so long as the sum of all shares owned by those licensed persons does not exceed 49 percent of the total number of shares of the professional corporation and so long as the number of those licensed persons owning shares in the professional corporation does not exceed the number of persons licensed by the governmental agency regulating the designated professional corporation:
A professional medical corporation may establish in its articles or bylaws the manner in which its directors are selected and removed, their powers, duties, and compensation. Each term of office may not exceed three years. The articles or bylaws of a professional medical corporation with more than 200 shareholders may provide that directors who are officers of the corporation or who are responsible for the management of all medical services at one or more medical centers may have terms of office, as directors, of up to six years; however, no more than 50 percent of the members of the board, plus one additional member of the board, may have six-year terms of office.
A professional corporation may lawfully render professional services in this state, but only through employees who are licensed persons. The corporation may employ persons not so licensed, but such persons may not render any professional services rendered or to be rendered by that corporation in this state. A professional corporation may render professional services outside of this state, but only through employees who are licensed to render the same professional services in the jurisdiction or jurisdictions in which the person practices.
A professional corporation may adopt any name permitted by a law expressly applicable to the profession in which such corporation is engaged or by a rule or regulation of the governmental agency regulating such profession. The §201(b) do not apply to the name of a professional corporation if name contains or is restricted to the name or the last name of one or more of the present, prospective, or former shareholders or of persons who were associated with a predecessor person, partnership or other organization or whose name or names appeared in the name of such predecessor organization, and the Secretary of State shall have no authority by reason of §201(b) to refuse to file articles of incorporation which set forth such a name.
§§ 2000-2521 (Medicine)
A medical corporation is a corporation which is authorized to render professional services, as defined in §§ 13401 and 13401.5 of the Corporations Code, so long as that corporation and its shareholders, officers, directors and employees rendering professional services who are physicians, psychologists, registered nurses, optometrists, podiatrists physician assistants, are in compliance with the Moscone-Knox Professional Corporation Act, the provisions of BUSINESS AND PROFESSIONS CODE, §§ 2000-2521, and all other statutes and regulations now or hereafter enacted or adopted pertaining to the corporation and the conduct of its affairs.
With respect to a medical corporation, the governmental agency referred to in the Moscone-Knox Professional Corporation Act is the Division of Licensing.
Except as provided in §§ 13401.5 and 13403 of the CORPORATIONS CODE, each shareholder, director and officer of a medical corporation, except an assistant secretary or an assistant treasurer, shall be a licensed person as defined in the CORPORATIONS CODE.
A shareholder of a medical corporation which renders professional services may be a medical corporation which has only one shareholder who shall be a licensed person licensed person as defined in the CORPORATIONS CODE. The shareholder of the latter corporation may be an officer or director of the former corporation.
The income of a medical corporation attributable to professional services rendered while a shareholder is a disqualified person, as licensed person as defined in the CORPORATIONS CODE, shall not in any manner accrue to the benefit of such a shareholder or his or her shares in the a professional corporation.
A medical corporation may not do or fail to do any act the doing of which or the failure to do which would constitute unprofessional conduct under any statute or regulation now or hereafter in effect. In the conduct of its practice, the medical corporation must observe and be bound by such statutes and regulations to the same extent as a licensee under CALIFORNIA BUSINESS AND PROFESSIONS CODE, §§ 2000-2521.
The offering and operation by a medical corporation of a health care service plan licensed pursuant to the provisions of Chapter 2.2 (commencing with Section 1340) of Division 2 of the Health and Safety Code is hereby authorized. For such purpose a medical corporation may employ, or enter into contracts or other arrangements with, any person or persons authorized to practice any of the healing arts, but no such employment, contract, or arrangement shall provide for the rendering, supervision, or control of professional services other than as authorized by law.
The Division of Licensing may adopt and enforce regulations to carry out the purposes and objectives of this article and the Moscone-Knox Professional Corporation Act including regulations requiring (a) that the bylaws of a medical or podiatry corporation shall include a provision whereby the capital stock of such corporation owned by a disqualified or a deceased person shall be sold to the corporation or to the remaining shareholders of such corporation within such time as such regulations may provide and that a medical corporation shall provide adequate security by insurance or otherwise for claims against it by its patients arising out of the rendering of professional services.
Any type of business organization that holds itself out to the public as an organization practicing medicine, or that a reasonably informed person would believe is engaged in the practice of medicine, shall be owned and operated only by one or more licensed physicians and surgeons.
A physician and surgeon who knowingly practices medicine with a business organization not owned or operated in compliance with the above restriction will have his or her license to practice permanently revoked.
Inside California Professional Corporations for Doctors Law