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CA AB1686

Bill

Official Source

Status

Failed

11/30/2016

Primary Sponsor

Travis Allen

Click for details

Origin

State Assembly

2015-2016 Session

AI Summary

  • Raises the maximum number of shareholders allowed in a close corporation from 35 to 40 persons under California Corporations Code Section 158
  • Requires close corporation articles to contain a provision limiting share ownership to a specified number of persons not exceeding 40 and a statement identifying the corporation as a close corporation
  • Maintains existing requirements that amendments to close corporation provisions require affirmative votes from all outstanding shares (if after issuance) or two-thirds of each class (for deletion or modification)
  • Removes provisions from Financial Code Section 1002 that prohibited banks from being classified as close corporations

Legislative Description

Close corporations.

Last Action

From committee without further action.

11/30/2016

Committee Referrals

Banking and Finance3/17/2016

Full Bill Text

No bill text available