SECTIONS 4731-4738 - California Statutes

PUBLIC RESOURCES CODE

SECTION 4731-4738

4731. Corporations may be formed under the general corporation laws
of this state for the protection and development of forest and other
renewable natural resources, except as the provisions of such laws
are modified or extended by the provisions of this article.

4732. All shares of stock issued by the corporation shall have a
par value, and, in addition to other requirements prescribed by law,
the articles of incorporation shall set forth all of the following:
(a) That one of the purposes for which the corporation is formed
is the protection and development of forest and other renewable
natural resources.
(b) The par value of all shares of capital stock of the
corporation.
(c) All projects for the protection and development of forests or
other renewable natural resources undertaken by the corporation
shall, at all times, be subject to the supervision and regulation of
the state through the board or other appropriate state authority and
subject to the provisions of this article.

4733. No shareholder of any corporation formed pursuant to this
article shall receive or accept from the corporation in repayment of
his investment in its shares any sum in excess of the par value of
the shares together with current dividends of not to exceed 7 percent
per annum of the par value and any cumulative dividends to which the
shareholder may be entitled.

4734. Any corporation formed pursuant to this article may, if so
authorized by the Commissioner of Corporations, borrow money from or
sell, pledge, or discount its securities to any corporation or agency
established under the authority of the federal government.

4735. Any corporation operating in or upon forests or forest lands
of this state which borrows money from any corporation or agency
established under the authority of the federal government for the
purpose of conducting lumber operations shall thereupon automatically
become subject to this article.

4736. No operation of a corporation operating pursuant to this
article, involving the cutting of timber or other work upon forest
lands shall be commenced without the approval of the board. For the
purpose of regulating the conduct of such corporations the board
shall establish reasonable regulations regarding adequate fire
protection, protection of timber against infestation of forest
insects, protection against tree disease epidemics, and provision for
natural or artificial reforestation of the areas cut over. The board
may make such other reasonable regulations regarding the operation
of such corporations as in its opinion is necessary for the proper
preservation or protection of the forests and forest lands.

4737. The board shall make regular examination of the properties of
such corporations during the operating season at intervals of not
more than two months apart. Following such examination a report shall
be submitted to the public agency from which loans have been made to
the corporation. The cost of such examination shall be charged to
and paid by the corporation whose property is examined. If in the
opinion of the board the plan of forest management is not being
adhered to, the board shall notify the lumber operators and the
lender of this fact.

4738. The operation of any corporation formed pursuant to this
article shall, in addition to the requirements of this article, be
subject to any stipulations or provisions contained in any contract
which may be entered into between the corporation and the corporation
or agency established under the authority of the federal government
which may have loaned or advanced funds for the operations of the
corporation.