SECTIONS 2775-2781 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 2775-2781

2775. A nursing corporation is a corporation which 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 registered nurses are in compliance with the Moscone-Knox
Professional Corporation Act, the provisions of this article and all
other statutes and regulations now or hereafter enacted or adopted
pertaining to such corporation and the conduct of its affairs.
With respect to a nursing corporation, the governmental agency
referred to in the Moscone-Knox Professional Corporation Act is the
Board of Registered Nursing.

2776. 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.

2777. A nursing 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.

2778. The name of a nursing corporation and any name or names under
which it may render professional services shall contain the words
"nursing" or "registered nursing," and wording or abbreviations
denoting corporate existence.

2779. Except as provided in Sections 13401.5 and 13403 of the
Corporations Code, each shareholder, director and officer of a
nursing corporation, except an assistant secretary and an assistant
treasurer, shall be a licensed person as defined in Section 13401 of
the Corporations Code.

2780. The income of a nursing 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 nursing corporation.

2781. 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 nursing corporation shall include
a provision whereby the capital stock of such 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 such corporation within such time as
such regulations may provide, and (b) that a nursing corporation
shall provide adequate security by insurance or otherwise for claims
against it by its patients arising out of the rendering of
professional services.