California Codes, Business and Professions Code - BPC, Division 2 — Healing Arts, Chapter 5.3 — Speech-Language Pathologists, Audiologists, and Hearing Aid Dispensers, Article 7 — Speech-Language Pathology Corporations and Audiology Corporations, Section 2537.5

The board may adopt and enforce regulations to carry out the purposes and objectives of this article, and the Moscone-Knox Professional Corporation Act, including regulations requiring any of the following:

(a) That the bylaws of a speech-language pathology corporation or an audiology 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 by the estate of a deceased person shall be sold to the corporation or to the remaining shareholders of the corporation within that time as the regulations may provide.

(b) That a speech-language pathology corporation or an audiology corporation shall provide adequate security by insurance or otherwise for claims against it by its patients arising out of the rendering of professional services.