SECTIONS 14045-14052 - California Statutes

CORPORATIONS CODE

SECTION 14045-14052

14045. Upon approval by the director to become a corporation, the
entity shall adopt or amend its articles of incorporation to comply
with the following:
(a) The name of the corporation shall include the words "small
business financial development corporation," except for those
corporations formed pursuant to this part prior to 2002, which may
also be called "small business development corporations," or those
formed prior to 1985, which may also be called "rural or urban
development corporations."
(b) The purposes for which the corporation is formed, which shall
be those specified in Section 14002. This requirement shall not be
deemed to preclude a statement of powers.
(c) A geographical description of the corporation's service area.
(d) The name and addresses of seven or more persons who are to act
in the capacity of directors until the selection of their
successors.
(e) That the corporation is organized pursuant to the California
Small Business Financial Development Corporation Law.

14046. If the board recommends acceptance upon the basis of the
facts disclosed by the investigation provided by subdivision (d) of
Section 14022 and finds that the proposed incorporation meets all the
requirements of this chapter, the director shall approve the
articles of incorporation and endorse the approval thereon and
forward the same to the Secretary of State for his or her approval
and filing. Likewise, the director shall recommend approval or
disapproval of all amendments to the articles. The director shall
endorse the approval on the amendatory document before the document
is forwarded to the Secretary of State for his or her approval and
filing.

14047. The corporation's existence as a small business development
corporation begins upon the filing of the articles with the Secretary
of State and continues perpetually, unless otherwise expressly
provided for by law.

14048. Any request for proposal for selection of a corporation
shall require the winning bidder to adopt or amend its bylaws to
include provisions governing the election and qualification of
directors; the establishment and functions of loan committees of the
corporation; and the method of selecting the representative of the
corporation on the board.
The bylaws shall provide for removal of officers only by a
two-thirds vote of the directors of the corporation.

14049. Each corporation shall have provisions establishing a
grievance procedure for employees, clients, or potential clients, to
appeal a decision or obtain redress of an action done by the staff or
loan committee of the corporation. The procedures shall be
established in writing during the probationary period of a new
corporation.

14050. The board may authorize the establishment of a new
corporation using a request for proposal process.

14051. The Nonprofit Public Benefit Corporation Law (Part 2
(commencing with Section 5110) of Division 2 of this title) applies
to corporations formed under this chapter, except as to matters
otherwise provided for in this chapter.

14052. For six months following the establishment of a corporation,
commencing upon filing of the articles of incorporation with the
Secretary of State, a corporation shall be on probation. While on
probation, a corporation may be suspended if suspension is
recommended by the director. This suspension is nonappealable and not
subject to the procedures for suspension applicable to a corporation
not on probation.