Physical Therapy Corporations - Physical Therapy - Business & Professions - CA

Section § 2690

This law states that a physical therapy corporation can provide professional services if it and all involved individuals, like shareholders and employees, comply with certain requirements. These include adhering to the Moscone-Knox Professional Corporation Act and other relevant regulations. The Physical Therapy Board of California is responsible for overseeing these corporations.

A physical therapy corporation is 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 physical therapists 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.

With respect to a physical therapy corporation, the governmental agency referred to in the Moscone-Knox Professional Corporation Act is the Physical Therapy Board of California.

physical therapy corporation professional services Moscone-Knox Act

Section § 2691

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.

unprofessional conduct licensed person violate rules

Section § 2692

This section says that physical therapy companies must follow all the rules and regulations that individual licensed physical therapists adhere to. They can't do anything that would be considered unprofessional for a physical therapist.

A physical therapy 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.

physical therapy corporation unprofessional conduct licensed physical therapists

Section § 2693

A physical therapy corporation in California must include the words “physical therapy” or “physical therapist” in its name, along with terms or abbreviations that indicate it is a corporation.

The name of a physical therapy corporation and any name or names under which it may render professional services shall contain the words “physical therapy” or “physical therapist”, and wording or abbreviations denoting corporate existence.

physical therapy corporation corporate existence professional services

Section § 2694

This law states that everyone involved in running a physical therapy corporation in California—like shareholders, directors, and officers—must be licensed, except for the assistant secretary and assistant treasurer. There's an exception found in another part of the law, Section 13403 of the Corporations Code.

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

physical therapy corporation licensed person shareholders

Section § 2695

If a physical therapy corporation has a shareholder who is considered disqualified, any money made from professional services during this time cannot benefit that shareholder or increase the value of their shares.

The income of a physical therapy 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 such shareholder or his or her shares in the physical therapy corporation.

physical therapy corporation shareholder disqualified person

Section § 2696

This law allows the governing board to create rules for physical therapy corporations. These rules can require that if a shareholder is either unable to legally own shares or has passed away, their shares must be sold to the corporation or other shareholders within a set time. Additionally, these corporations must have sufficient insurance or security to cover any 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 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.

physical therapy corporation disqualified person deceased shareholder