2995-2999

BUSINESS AND PROFESSIONS CODE
SECTION 2995-2999




2995.  A psychological 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 psychologists, podiatrists, registered
nurses, optometrists, marriage and family therapists, licensed
clinical social workers, chiropractors, acupuncturists, or physicians
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 that corporation and the
conduct of its affairs.



2996.  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.



2996.1.  A psychological 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 licensed under this chapter.



2996.2.  The income of a psychological 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 psychological corporation.


2997.  Except as provided in Sections 13401.5 and 13403 of the
Corporations Code, each shareholder, director and officer of a
psychological corporation, except an assistant secretary and an
assistant treasurer, shall be a licensed person as defined in Section
13401 of the Corporations Code.



2998.  The name of a psychological corporation and any name or names
under which it may render professional services shall contain one of
the words specified in subdivision (c) of Section 2902, and wording
or abbreviations denoting corporate existence.



2999.  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 psychological corporation shall
include a provision whereby the capital stock of that 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 that corporation
within any time as those regulations may provide, and (b) that a
psychological 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.