SECTIONS 2690-2696 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 2690-2696

2690. 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.

2691. 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.

2692. 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.

2693. 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.

2694. 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.

2695. 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.

2696. 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.