Section § 2775

Explanation

This law explains what a nursing corporation is and outlines its ability to provide professional nursing services. It emphasizes that nursing corporations, along with their registered nurse shareholders, officers, directors, and employees, must follow the Moscone-Knox Professional Corporation Act and other relevant laws and regulations. The Board of Registered Nursing is the relevant agency overseeing nursing corporations in California.

A nursing corporation is a corporation which is authorized to render professional services, as defined in Section 13401 of the Corporations Code, so long as that corporation and its shareholders, officers, directors, and employees rendering professional services who are registered nurses are in compliance with the Moscone-Knox Professional Corporation Act, the provisions of this article and all other statutes and regulations now or hereafter enacted or adopted pertaining to such corporation and the conduct of its affairs.
With respect to a nursing corporation, the governmental agency referred to in the Moscone-Knox Professional Corporation Act is the Board of Registered Nursing.

Section § 2776

Explanation

This law states that it's considered unprofessional behavior for a licensed person to break or try to break any rules of this chapter, the Moscone-Knox Professional Corporation Act, or related regulations, whether directly or indirectly. Helping or planning with others to break these rules is also prohibited.

It shall constitute unprofessional conduct and a violation of this chapter for any person licensed under this chapter to violate, attempt to violate, directly or indirectly, or assist in or abet the violation of, or conspire to violate any provision or term of this article, the Moscone-Knox Professional Corporation Act, or any regulations duly adopted under those laws.

Section § 2777

Explanation

This law says that a nursing corporation must follow the same rules of professional conduct as individual licensed nurses. If a certain action or inaction would be considered unprofessional for a nurse, the corporation must avoid that action or inaction as well. Essentially, nursing corporations have to adhere to the same standards as individual nurses when it comes to their practice.

A nursing corporation shall not do or fail to do any act the doing of which or the failure to do which would constitute unprofessional conduct under any statute or regulation, now or hereafter in effect. In the conduct of its practice, it shall observe and be bound by such statutes and regulations to the same extent as a person holding a license under this chapter.

Section § 2778

Explanation
A nursing corporation's name must include the word 'nursing' or 'registered nursing' and also indicate that it is a corporation.
The name of a nursing corporation and any name or names under which it may render professional services shall contain the words “nursing” or “registered nursing,” and wording or abbreviations denoting corporate existence.

Section § 2779

Explanation

This law requires that everyone involved in the management of a nursing corporation, like shareholders, directors, and officers (except certain assistants), must be licensed professionals.

Except as provided in Sections 13401.5 and 13403 of the Corporations Code, each shareholder, director and officer of a nursing corporation, except an assistant secretary and an assistant treasurer, shall be a licensed person as defined in Section 13401 of the Corporations Code.

Section § 2780

Explanation

This law says that if a shareholder in a nursing corporation loses their qualification to offer professional services, they can't benefit financially from any services performed during that disqualification period. Their shares won't accrue income from those services either.

The income of a nursing corporation attributable to professional services rendered while a shareholder is a disqualified person, as defined in Section 13401 of the Corporations Code, shall not in any manner accrue to the benefit of the shareholder or their shares in the nursing corporation.

Section § 2781

Explanation

This section gives the board the power to create and enforce rules to achieve the goals of the article. Specifically, it may require nursing corporations to have rules for buying back shares from owners who are disqualified or have passed away. It also insists that nursing corporations must have insurance or other forms of security to protect against claims from patients due to professional services provided.

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.