Corporations Code Section News Today

The California General Corporation Law expectedly grants inspection rights to shareholders and directors of California corporations.  Unexpectedly (at least to practitioners outside...

One difficulty of answering the question of whether a general counsel is a corporate officer is that the California General Corporation Law does not define "officer".  Corporations Code...

The law requires home owner's associations to keep their corporate status current, and failure can be disastrous.

Corporate suspension is a very serious matter. Suspended corporations are not recognized by the law as existing.

The law requires HOAs to keep their corporate status current, and failure can be disastrous.

To determine whether an association is incorporated, look at the first page of the HOA’s bylaws.

Is the issuance of shares upon exercise of a stock option distinguishable from the issuance of the option?  The answer under California's Corporate Securities Law of 1968 may surprise...

Managers, whether employed directly by the HOA or through a management company, are — and must be — ultimately responsible to the HOA and directed by the HOA

Mr. Richardson: I am president of an HOA with management whose performance has been lackluster. Lackluster is characterized by little to no communications unless initiated by the board, not following through with board instructions, and inability to manage our violations process in a steady and predictable manner.

Routinely encourage managers to take an active advisory role, to ensure the board makes the final decision.