California Code of Regulations › Title 16 - Professional and Vocational Regulations › Division 13 - Medical Board of California › Chapter 1 - Licensing › Article 13 - Professional Corporations › Section 1343 - Requirements for Professional Corporations

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A professional corporation shall comply with the following
					 provisions:
(a) The corporation is
				  organized and exists pursuant to the general corporation law and is a
				  professional corporation within the meaning of the Moscone-Knox Professional
				  Corporations Act (Corporations Code Section
				  13400 et
				  seq.).
(b) Each shareholder,
				  director or officer (except as provided in Section
				  13403 of
				  the Corporations Code and Section
				  2408 of the code) holds a valid
				  physician's and surgeon's certificate or certificate to practice podiatric
				  medicine, as the case may be, provided that, a licensed podiatrist,
				  psychologist, optometrist, physician's assistant, clinical social worker,
				  marriage, family and child counselor, chiropractor or registered nurse may be a
				  shareholder, director or officer of a medical corporation so long as such
				  licensed persons own no more than 49% of the total shares issued by the medical
				  corporation and the number of licensed persons owning shares in the medical
				  corporation does not exceed the number of physicians owning shares in such a
				  corporation, and a licensed physician may be a shareholder, director or officer
				  of a podiatry corporation so long as such physician owns no more than 49% of
				  the total shares issued by the podiatry corporation and the number of licensed
				  physicians owning shares in the podiatry corporation does not exceed the number
				  of podiatrists owning shares in such a corporation. A physician, psychologist,
				  optometrist and registered nurse may also be a shareholder, director or officer
				  in a podiatry corporation subject to the same numerical restrictions.
(c) Each professional employee of the
				  corporation who will practice medicine, podiatry, psychology, optometry,
				  clinical social work, marriage, family and child counselling, chiropractic or
				  nursing, whether or not a director, officer or shareholder, holds a valid
				  license.
(d) A physician and
				  surgeon or podiatrist may be a shareholder, officer or director in more than
				  one professional corporation.
1. Amendment
					 of subsections (b) and (d) filed 5-10-78; effective thirtieth day thereafter
					 (Register 78, No. 19).
2. Amendment of subsections (b) and (d) filed
					 4-11-80; effective thirtieth day thereafter (Register 80, No.
					 15).
3. Amendment filed 8-5-81; effective thirtieth day thereafter
					 (Register 81, No. 32).
4. Amendment filed 2-16-84; effective
					 thirtieth day thereafter (Register 84, No. 7).
5. Change without
					 regulatory effect amending subsections (b) and (c) filed 3-2-98 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 98, No. 10).
Note: Authority cited: Sections
						2018
						and
						2412,
						Business and Professions Code. Reference: Sections
						2406
						and
						2408,
						Business and Professions Code; Sections
						13401,
						13401.5,
						13403,
						13405,
						13406
						and
						13407,
						Corporations Code.