SECTIONS 28500-28505 - California Statutes

CORPORATIONS CODE

SECTION 28500-28505

28500. Each licensee shall make and keep books, accounts, and other
records in the form and in the manner that the commissioner may by
regulation or order require. All records so required shall be kept at
the place and shall be preserved for the time that the commissioner
may by regulation or order specify.

28501. Each licensee shall, not more than 90 days after the close
of each of its fiscal years or within a longer period that the
commissioner may by regulation or order specify, file with the
commissioner an audit report containing all of the following:
(a) Financial statements (including balance sheets, statements of
income or loss, statements of changes in capital accounts, and
statements of cashflows or, in the case of a licensee that is a
California nonprofit corporation, comparable financial statements)
for, or as of, the end of the fiscal year, prepared, with audit, by
an independent certified public accountant in accordance with
generally accepted accounting principles.
(b) A report, certificate, or opinion of the independent certified
public accountant or independent public accountant, stating that the
financial statements were prepared in accordance with generally
accepted accounting principles.
(c) Any other information that the commissioner may by regulation
or order require.

28502. Each licensee, director, officer, and employee of a
licensee, and each parent and subsidiary of a licensee shall file
with the commissioner all reports that the commissioner may by
regulation or order require within the timeframe specified. In
addition, each affiliate of a licensee (other than a parent or
subsidiary of the licensee) shall file with the commissioner all
reports regarding transactions between the affiliate and the licensee
that the commissioner may require within the timeframe specified.
Each report shall be in a form, shall contain information, shall be
signed in a manner, and shall be verified in a manner, that the
commissioner may by regulation or order require.

28503. (a) The commissioner shall examine each licensee not less
frequently than once each calendar year.
(b) (1) The commissioner may at any time examine any licensee or
any parent or subsidiary of a licensee.
(2) The commissioner may at any time examine any affiliate of a
licensee (other than a parent or subsidiary of the licensee), but
only with respect to matters relating to transactions between the
affiliate and the licensee.
(c) The directors, officers, and employees of any licensee or of
any affiliate of a licensee being examined by the commissioner and
any other person having custody of any of the books, accounts, or
records of the licensee or of the affiliate shall exhibit to the
commissioner, on request, any or all of the books, accounts, and
other records of the licensee or of the affiliate and shall otherwise
facilitate the examination so far as it may be in their power to do
so. However, in the case of an examination of an affiliate of a
licensee other than a parent or subsidiary of the licensee, only
books, accounts, and records of the affiliate that relate to
transactions between the affiliate and the licensee shall be subject
to this subdivision.
(d) The commissioner may, if in his or her opinion it is necessary
in the examination of any licensee or of any affiliate of a
licensee, retain any certified public accountant, attorney,
appraiser, or other person to assist him or her, and the licensee
shall pay, within 10 days after receipt of a statement from the
commissioner, the fees of the person retained.

28504. (a) A licensee may, after the approval of the board of
directors, executive committee, or other policy body of the licensee,
cause or permit any other person to make or keep any of its books,
accounts, or other records.
(b) If any person other than a licensee makes or keeps any of the
books, accounts, or other records of the licensee, the provisions of
this division and of any regulation or order issued under this
division shall apply to the person with respect to the performance of
those services and with respect to those books, accounts, and other
records to the same extent as if the person were the licensee.
(c) If any person other than an affiliate of a licensee makes or
keeps any of the books, accounts, or other records of the affiliate
or, in the case of an affiliate other than a parent or subsidiary of
the licensee, the books, accounts, and other records of the affiliate
that relate to transactions between the affiliate and the licensee,
the provisions of this division and of any regulation or order issued
under this division shall apply to the person with respect to those
books, accounts, and other records to the same extent as if the
person were the affiliate.

28505. Subject to the provisions of Rules 250.10 and 250.10.5 of
the Commissioner of Corporations (10 C.C.R. Secs. 250.10 and
250.10.5), the commissioner may make available to the public any
report filed with him or her under this division or under any
regulations or order issued under this division.