Pharmacy Corporations - Pharmacy - Business & Professions - CA

Section § 4150

This law defines what a pharmacy corporation is in California. Essentially, it's a business that offers pharmacist services and follows specific rules. These corporations must ensure that their shareholders, officers, directors, and pharmacists comply with certain professional standards, including those set by the Moscone-Knox Professional Corporation Act. Additionally, when it comes to pharmacy corporations, the California Board of Pharmacy is the overseeing governmental agency.

(a) A pharmacy corporation means a corporation that 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 pharmacists are in compliance with the Moscone-Knox Professional Corporation Act, this article, and all other statutes and regulations now or hereafter enacted or adopted pertaining to the corporation and the conduct of its affairs.

(b) With respect to a pharmacy corporation, the governmental agency referred to in the Moscone-Knox Professional Corporation Act is the Board of Pharmacy of the State of California.

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Section § 4151

If you're involved in running or starting a pharmacy corporation in California, most of the key people—like shareholders, directors, and officers—need to be professionally licensed, with the exception of the assistant secretary and assistant treasurer.

Each shareholder, director, and officer of a pharmacy corporation, except an assistant secretary and an assistant treasurer, shall be a licensed person as defined in Section 13401 of the Corporations Code.

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Section § 4152

If a pharmacy corporation in California wants to name itself or provide services under a certain name, that name must include the word 'pharmacist,' 'pharmacy,' or 'pharmaceutical,' along with some indication that it is a corporation.

The name of a pharmacy corporation and any name or names under which it may render professional services shall contain the word “pharmacist,” “pharmacy,” or “pharmaceutical” and wording or abbreviations denoting corporate existence.

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Section § 4153

This law says that if a person who owns shares in a pharmacy corporation becomes disqualified (unable to practice), any money earned from their professional services cannot benefit them or their shares in the corporation.

The income of a pharmacy 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 his or her shares in the pharmacy corporation.

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Section § 4154

This law allows the board overseeing pharmacy corporations to create rules that help them achieve their goals. These rules can include requirements that if a pharmacy shareholder becomes disqualified or dies, their shares must be sold back to the company or to the other shareholders within a certain time. Additionally, pharmacy corporations must have insurance or another form of security to protect against claims from their clients due to the 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 pharmacy 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 pharmacy corporation shall provide adequate security by insurance or otherwise for claims against it by its patients or clients arising out of the rendering of professional services.

pharmacy corporation shareholder disqualification bylaws

Section § 4155

This law clarifies that an individual or business applying for a pharmacy permit doesn't have to be a pharmacy corporation. It ensures that the requirement to obtain such a permit is not limited to corporate entities.

Nothing in this article shall be construed as requiring the applicant or holder of a pharmacy permit pursuant to Section 4110 to be a pharmacy corporation.

pharmacy permit applicant holder

Section § 4156

This law states that a pharmacy corporation must follow the same professional standards and legal regulations that apply to individual licensed pharmacists. They cannot act in ways that would be considered unprofessional conduct under any applicable laws or rules.

A pharmacy corporation shall not do, or fail to do, any act where doing or failing to do the act would constitute unprofessional conduct under any statute or regulation. In the conduct of its practice, a pharmacy corporation shall observe and be bound by the laws and regulations that apply to a person licensed under this chapter.

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