SECTIONS 8040-8047 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 8040-8047

8040. A shorthand reporting corporation is a corporation which is
authorized to render professional services, as defined in Section
13401 of the Corporations Code, as long as that corporation and all
of its shareholders, officers, directors, and employees rendering
professional services who are certified shorthand reporters 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 officers. With respect to a shorthand reporting corporation, the
governmental agency referred to in the Moscone-Knox Professional
Corporation Act is the Court Reporters Board of California.

8042. 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.

8043. The name of a shorthand reporting 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,
corporation or other organization and whose name or names appeared in
the name of such predecessor organization, and shall include either
(a) the words "shorthand reporting corporation;" (b) the title
"certified shorthand reporter," or the abbreviation "C.S.R.," and
wording or abbreviations denoting corporate existence; or (c) the
words "a professional corporation."

8044. Except as provided in Section 13403 of the Corporations Code,
each director, shareholder, and officer of a shorthand reporting
corporation shall be a licensed person as defined by Section 13401 of
the Corporations Code.

8045. The income of a shorthand reporting corporation attributable
to professional services rendered while a shareholder is a
disqualified person, as defined by Section 13401 of the Corporations
Code, shall not in any manner accrue to the benefit of such
shareholder for his shares in the shorthand reporting corporation.

8046. A shorthand reporting 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 which pertains to shorthand
reporters or shorthand reporting. In conducting its practice it shall
observe and be bound by such statutes, rules and regulations to the
same extent as a person holding a license under this chapter.

8047. The board may formulate and enforce rules and regulations to
carry out the provisions of this article, including rules and
regulations requiring (a) that the articles of incorporation or
bylaws of a shorthand reporting corporation shall include a provision
whereby the capital stock of such corporation owned by a
disqualified person, as defined by Section 13401 of the Corporations
Code, or a deceased person shall be sold to the corporation or the
remaining shareholders within such time as such rules and regulations
may provide; and (b) that a shorthand reporting corporation as a
condition of obtaining a certificate pursuant to the Moscone-Knox
Professional Corporation Act and this article shall provide adequate
security by insurance or otherwise for claims against it by its
clients for errors and omissions arising out of the rendering of
professional services.