California Codes, Business and Professions Code - BPC, Division 2 — Healing Arts, Chapter 5.7 — Physical Therapy, Article 10 — Physical Therapy Corporations, Section 2696
The board may adopt and enforce regulations to carry out the purposes and objectives of this article, including regulations requiring (a) that the bylaws of a physical therapy corporation shall include a provision whereby the capital stock of the corporation owned by a disqualified person (as defined in Section 13401 of the Corporations Code), or a deceased person, shall be sold to the corporation or to the remaining shareholders of the corporation within the time as the regulations may provide, and (b) that a physical therapy corporation shall provide adequate security by insurance or otherwise for claims against it by its patients arising out of the rendering of professional services.
Notes
Allows the board to adopt and enforce regulations carrying out the article, including rules requiring stock owned by a disqualified or deceased person to be sold to the corporation or remaining shareholders within the regulatory period. Allows rules requiring a physical therapy corporation to maintain adequate insurance or other security for patient claims arising from professional services.
Use as reference
Lexinter.net | California Code, Business and Professions Code - BPC § 2696 | https://laws.lexinter.net/codes/california/business-and-professions-code/division-2/chapter-5-7/article-10/section-2696