California CodesBusiness and Professions Code - BPCDivision 2 — Healing ArtsChapter 6 — NursingArticle 3.5 — Nursing CorporationsSection 2781
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 nursing corporation shall include a provision whereby the capital stock of such 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 such corporation within such time as such regulations may provide, and (b) that a nursing 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 regulate nursing corporations, including requiring bylaws to provide for stock owned by a disqualified or deceased person to be sold to the corporation or remaining shareholders within a regulatory period. Allows regulations requiring the 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 § 2781 | https://laws.lexinter.net/codes/california/business-and-professions-code/division-2/chapter-6/article-3-5/section-2781