Friday, May 14, 2021
About eight years ago, I wrote about Section 201(a) of the California Corporations Code which prohibits the Secretary of State from filing articles of incorporation setting forth a name in which “bank,” “ trust,” “trustee,” or related words appear, unless a certificate of approval of the Commissioner of Financial Protection & Innovation is attached thereto. The statute quite clearly does not prohibit a corporation from using the word bank in its business.
Chime Financial Inc. quite obviously doesn t use bank as part of its name. However, Chime used Chimebank.com as URL address until February of last year when the DFPI came knocking. The DFPI found that the use of Chimebank.com violated Section 561 of the Financial Code. That statute does not absolutely forbid the use of the word bank but it does generally forbid use of the corporate or artificial names or words suggesting that a person is a bank or engaged in banking
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About eight years ago, I wrote about Section 201(a) of the California Corporations Code which prohibits the Secretary of State from filing articles of incorporation setting forth a name in which “bank,” “ trust,” “trustee,” or related words appear, unless a certificate of approval of the Commissioner of Financial Protection & Innovation is attached thereto. The statute quite clearly does not prohibit a corporation from using the word bank in its business.
Chime Financial Inc. quite obviously doesn t use bank as part of its name. However, Chime used Chimebank.com as URL address until February of last year when the DFPI came knocking. The DFPI found that the use of Chimebank.com violated Section 561 of the Financial Code. That statute does not absolutely forbid the use of the word bank but it does generally forbid use of the corporate or artificial names or words suggesting that a person is a
Chapter 5 of the California Corporations Code imposes specific limitations on distributions to shareholders. Because California chartered banks are formed under the California General.
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Tuesday, May 4, 2021
Section 311 of the California Corporations Code authorizes the creation of one or more committees. Unlike Delaware, a committee of the board must have two or more members. The board of directors may vest all of the authority of the board in a committee except with respect to seven specified actions. One of these actions is authorization of a distribution to the corporation s shareholders.
Because Section 166 defines distribution to its shareholders to include a corporation s purchase or redemption of its own shares, a board may not delegate to a committee of the board its authority with respect to share repurchases. The statute, however, includes an exception to the limitation. Subdivision (f) of Section 311 permits such a delegation if the repurchase or redemption is within a price range set forth in the articles or determined by the board .