SECTIONS 5610-5610.7 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 5610-5610.7

5610. A professional architectural 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 licensed architects, are in compliance
with the Moscone-Knox Professional Corporation Act (Part 4
(commencing with Section 13400) of Division 3 of Title 1 of the
Corporations Code), this article, and all other statutes and
regulations pertaining to the corporation and the conduct of its
affairs. With respect to an architectural corporation, the
governmental agency referred to in the Moscone-Knox Professional
Corporation Act is the California Architects Board.

5610.2. It is unprofessional conduct and a violation of this
chapter, punishable as specified in Section 5560, 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, the Moscone-Knox Professional Corporation Act, this article,
or any regulation adopted pursuant to those provisions.

5610.3. The name of a professional architectural corporation and
any name or names under which it may be rendering professional
services shall contain and be restricted to the name or the last name
of one or more of the present, prospective, or former shareholders,
or of persons who were associated with a predecessor person,
partnership, or other organization and whose name or names appeared
in the name of the predecessor organization, and shall include either
(1) the words "architectural corporation" or (2) the word "architect"
or "architects" and wording or abbreviations denoting corporate
existence.

5610.4. Except as provided in Section 13403 of the Corporations
Code, each director, shareholder, and officer of a professional
architectural corporation shall be a licensed person as defined in
the Moscone-Knox Professional Corporation Act.

5610.5. The income of a professional architectural corporation
attributable to professional services rendered while a shareholder is
a disqualified person (as defined in the Moscone-Knox Professional
Corporation Act) shall not in any manner accrue to the benefit of
that shareholder or his or her shares in the professional
architectural corporation.

5610.6. A professional architectural 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, rule, or
regulation now or hereafter in effect. In the conduct of its
practice, it shall observe and be bound by those statutes, rules, and
regulations to the same extent as a person holding a license under
Section 5551.

5610.7. The board may formulate and enforce rules and regulations
to carry out the purposes and objectives of this article, including
rules and regulations requiring (a) that the articles of
incorporation or bylaws of an architectural corporation shall include
a provision whereby the capital stock of the corporation owned by a
disqualified person (as defined in the Moscone-Knox Professional
Corporation Act), or a deceased person, shall be sold to the
corporation or to the remaining shareholders of the corporation
within the time as those rules and regulations may provide, and (b)
that an architectural corporation shall provide adequate security by
insurance or otherwise for claims against it by its clients arising
out of the rendering of professional services.