AttorneysLaw Corporations
Section § 6160
This section explains that a law corporation in California is a business that has registered with the State Bar and holds a valid certificate from them. It can legally practice law following specific statutes and regulations. The State Bar is the main regulatory authority for these corporations.
Section § 6161
If a law corporation wants to register with the State Bar, it must provide various documents like its incorporation papers, bylaws, and the names and addresses of its key people, such as officers and directors. All professional service providers in the corporation must be licensed as defined by law. The State Bar can give a certificate of registration if everything seems in order and a fee is paid. The corporation must provide proof for any shareholders licensed to practice law in another country, along with an English translation, if necessary.
Section § 6161.1
If you run a law corporation in California, you're required to renew your certificate of registration every year at a time set by the State Bar. You'll have to pay a fee for this renewal, and the fee amount is determined by specific rules outlined by the State Bar.
Section § 6161.2
This law states that the fees collected for registration and renewal related to Sections 6161 and 6161.1 are to be given to the State Bar, which will use them for its regulatory and disciplinary activities.
Section § 6162
This law requires law corporations to notify the State Bar in writing whenever there are changes in key positions, such as directors or officers, changes in who owns shares of the corporation, or any amendments to their foundational documents like the articles of incorporation or bylaws. The specific time frame for these reports is set by the State Bar's rules.
Section § 6163
Law corporations in California must file annual reports with the State Bar to show they meet necessary qualifications and comply with specific rules. These reports must be signed by a corporate officer, and there’s a fee involved. If a corporation is late filing its report, they need to pay a penalty which could be up to double the usual fee. If a law corporation fails to file this annual report and doesn't pay the fees or penalties, their registration will be suspended 60 days after they receive a written delinquency notice. However, suspended certificates can be reinstated if the corporation files all overdue reports and pays all owed fees and penalties, including any that accumulate before the reinstatement.
Section § 6165
In a law corporation, every director, shareholder, and officer must be licensed to provide legal services. This requirement can be subject to exceptions mentioned in other specific sections of the Corporations Code.
Section § 6166
This law states that if a shareholder in a law corporation becomes disqualified from practicing law, the income from any professional services related to the corporation cannot benefit them or their shares.
Section § 6167
This law states that a law corporation must follow the same rules and regulations as individual lawyers who are licensed by the State Bar. If a law corporation does something, or fails to do something, that would get a lawyer disciplined, the corporation can also face consequences.
Section § 6168
This law allows the State Bar to investigate how a law corporation is run. During the investigation, they can call witnesses and request documents, similar to how they would in a disciplinary hearing. The whole process is private and won't be shared publicly, like information typically would under the public records laws, unless a cease and desist order is involved, which might make some information public later.
Section § 6169
If a law corporation in California is suspected of breaking any rules, the State Bar can give them a notice. This notice tells the corporation to explain why they shouldn't stop certain actions or have their business certificate suspended or revoked. The corporation will receive a formal notice like a legal summons. A special committee will review the case in a hearing where evidence can be presented and witnesses questioned. The committee will then recommend whether the corporation should stop the questioned actions or if their certificate should lose its validity. Either the State Bar or the corporation can ask the Board of Trustees to review the decision within 20 days. However, these rules don't apply if a sole shareholder dies or if the corporation fails to file an annual report or renew their certificate.
Section § 6170
This section explains that if the State Bar, its Board of Trustees, a committee, or the chief executive officer makes a decision, you can ask the Supreme Court to review it. You do this through a petition according to the Supreme Court's rules.
Section § 6171
This law lets the State Bar, with approval from the Supreme Court, make rules for law corporations. These rules can include how a law corporation handles stock owned by someone disqualified or deceased, ensuring insurance coverage for client claims, compliance in naming the corporation, and obtaining a permit to use a fictitious name. It also involves rules for applying and renewing permits, and this section has been in effect since January 1, 1996.
Section § 6171.1
Section § 6172
This law clarifies that the rules and discipline for lawyers in California remain unchanged, unless specifically mentioned, even when they work as employees, officers, or take on roles like shareholders or directors in a law corporation. Lawyers can still provide legal services as part of such corporations under certain conditions outlined in this article and the Professional Corporation Act.