{"id":2702,"date":"2022-05-02T07:41:13","date_gmt":"2022-05-02T07:41:13","guid":{"rendered":"https:\/\/crowdsourcelawyers.com\/california-statutes\/?page_id=2702"},"modified":"2022-05-20T23:45:07","modified_gmt":"2022-05-20T23:45:07","slug":"corporations-code-corp-25113","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/california-statutes\/california-statutes\/corporations-code-corp-25113\/","title":{"rendered":"Corporations Code &#8211; CORP 25113"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-l2oeqh7i-b98594090457abd9e6da46f5e9e67d27\">\n#top .av-special-heading.av-l2oeqh7i-b98594090457abd9e6da46f5e9e67d27{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-l2oeqh7i-b98594090457abd9e6da46f5e9e67d27 .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-l2oeqh7i-b98594090457abd9e6da46f5e9e67d27 .av-subheading{\nfont-size:22px;\n}\n<\/style>\n<div  class='av-special-heading av-l2oeqh7i-b98594090457abd9e6da46f5e9e67d27 av-special-heading-h1 blockquote modern-quote  avia-builder-el-0  el_before_av_hr  avia-builder-el-first '><div class='av-subheading av-subheading_above'><p>California<\/p>\n<\/div><h1 class='av-special-heading-tag '  itemprop=\"headline\"  >Corporations Code &#8211; CORP \u00a7 25113<\/h1><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_hr-3a876428eececa9d35452247ddb053af\">\n#top .hr.hr-invisible.av-av_hr-3a876428eececa9d35452247ddb053af{\nheight:50px;\n}\n<\/style>\n<div  class='hr av-av_hr-3a876428eececa9d35452247ddb053af hr-invisible  avia-builder-el-1  el_after_av_heading  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n<section  class='av_textblock_section av-av_textblock-e878f05c31dff72941bf1e49a00d9ff5 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><p><a href=\"https:\/\/crowdsourcelawyers.com\/\">CrowdSourceLawyers.com<\/a><\/p>\n<\/div><\/section>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad\">\n#top .avia_search_element.av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad .av_searchform_wrapper{\nborder-color:#edae44;\nbackground-color:#edae44;\n}\n#top .avia_search_element.av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad #s.av-input-field{\ncolor:#edae44;\n}\n#top .avia_search_element.av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad .av-input-field-icon.av-search-icon{\ncolor:#edae44;\n}\n#top .avia_search_element.av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad .av-input-field-icon.av-search-icon.avia-svg-icon svg:first-child{\nfill:#edae44;\nstroke:#edae44;\n}\n#top .avia_search_element.av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad #searchsubmit{\nbackground-color:#edae44;\n}\n#top .avia_search_element.av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad .av_searchsubmit_wrapper{\nbackground-color:#edae44;\n}\n<\/style>\n<div  class='avia_search_element av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad  avia-builder-el-3  el_after_av_textblock  el_before_av_hr '><search><form action='https:\/\/crowdsourcelawyers.com\/california-statutes\/' id='searchform_element' method='get' class='' data-element_id='av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad' ><div class='av_searchform_wrapper'><input type='search' value='' id='s' name='s' placeholder='Search CA statutes' aria-label='Search CA statutes' class='av-input-field ' required \/><div class='av_searchsubmit_wrapper '><input type='submit' value='Find' id='searchsubmit' class='button ' title='View results on search page' aria-label='View results on search page' \/><\/div><input type='hidden' name='numberposts' value='10' \/><input type='hidden' name='results_hide_fields' value='' \/><\/div><\/form><\/search><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_hr-3a876428eececa9d35452247ddb053af\">\n#top .hr.hr-invisible.av-av_hr-3a876428eececa9d35452247ddb053af{\nheight:50px;\n}\n<\/style>\n<div  class='hr av-av_hr-3a876428eececa9d35452247ddb053af hr-invisible  avia-builder-el-4  el_after_avia_sc_search  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n<section  class='av_textblock_section av-l2oexbwq-850a2d78957541f72854c9a9723c099a '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><div class=\"row\">\n<div class=\"subsection\"><\/div>\n<div class=\"subsection\">\n<div class=\"subsection\">\n<p>(a)\u2002All securities, whether or not eligible for qualification by coordination under\u00a0<span class=\"cite\">Section 25111\u00a0<\/span>or qualification by notification under\u00a0<span class=\"cite\">Section 25112\u00a0<\/span>, may be qualified by permit under this section.<\/p>\n<\/div>\n<div class=\"subsection\">\n<div class=\"subsection\">\n<p>(b)(1)\u2002An application for a permit under this section shall contain any information and be accompanied by any documents as shall be required by rule of the commissioner, in addition to the information specified in\u00a0<span class=\"cite\">Section 25160\u00a0<\/span>and the consent to service of process required by\u00a0<span class=\"cite\">Section 25165\u00a0<\/span>. \u2002For this purpose, the commissioner may classify issuers and types of securities.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(2)\u2002An applicant may file a small company application for permit under this section if it meets all of the following conditions:<\/p>\n<div class=\"subsection\">\n<p>(A)\u2002The applicant is: \u2009(i) a California corporation or a foreign corporation, which at the time of filing an application under this subdivision is subject to\u00a0<span class=\"cite\">Section 2115\u00a0<\/span>, and neither corporation is a \u201cblind pool\u201d company, as that term is defined by the commissioner; \u2009(ii) not engaged in oil and gas exploration or production, or mining or other extractive industries; \u2009(iii) not an investment company subject to the Investment Company Act of 1940; \u2009and (iv) not subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(B)\u2002The total offering of voting common stock and preferred stock by the applicant to be sold in a 12-month period, within or outside this state, is limited to one million dollars ($1,000,000), less the aggregate offering price for all securities sold (within the 12 months before the start, and during the offering, of the voting common stock or preferred stock) under Rule 504 of the Securities and Exchange Commission, in reliance on any exemption under subdivision (b) of Section 3 of the Securities Act of 1933, or in violation of subdivision (a) of Section 5 of that act, and immediately after the proposed sale and issuance there will be only one class of voting common stock.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(C)\u2002The minimum offering price of the voting common stock and preferred stock (and the conversion price if the preferred stock is convertible into the voting common stock) to be sold is two dollars ($2) per share and the applicant files an undertaking with the commissioner that there will be no stock splits, stock dividends, spinoffs, or mergers for a period of two years from the close of the offering. \u2002The undertaking notwithstanding, the commissioner may approve a spinoff or merger pursuant to an application for qualification filed by an applicant.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(D)\u2002The net proceeds from the offering are to be expended in the operations of the business.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(E)\u2002The offering is made pursuant to a Small Corporate Offering Registration disclosure document based on the Form U-7 as adopted by the North American Securities Administrators Association and any additional requirements as the commissioner shall prescribe, that may include, but not be limited to, investor suitability and due diligence investigation requirements.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(F)\u2002The application and disclosure document is reviewed and signed by a majority of the members of the board of directors of the applicant.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(G)\u2002The application shall contain that information and be accompanied by those documents required by rule of the commissioner, in addition to the information specified in\u00a0<span class=\"cite\">Section 25610\u00a0<\/span>and the consent to service of process required by\u00a0<span class=\"cite\">Section 25165\u00a0<\/span>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"subsection\">\n<p>(c)\u2002Qualification of securities under this section becomes effective upon the commissioner issuing a permit authorizing the issuance of those securities.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p><span class=\"added-material\">(d)\u2002The commissioner shall annually prepare a report, and make that report publicly available by posting the report on the department&#8217;s Internet Web site, summarizing data collected from persons to which it issues permits pursuant to this section. \u2002The report shall include, but not be limited to, a summary of the general categories of investments for which permits are approved; the minimum, maximum, and average net worth required of those persons to whom permits are issued for each category of activity; the least stringent and most stringent suitability standards imposed on persons issued permits for each category of activity; the experience requirements imposed on persons issued permits for each category of activity; the total dollar amount of money sought to be raised per category of activity; the number and nature of enforcement actions taken against permitholders; and any other information the commissioner deems relevant to inform the Legislature about the activities of permitholders and the protections for those who invest with permitholders. \u2002The commissioner shall take steps to ensure that the publication of data collected from permitholders does not result in the release of proprietary information about individuals or businesses.<\/span><\/p>\n<\/div>\n<div class=\"subsection\">\n<p><span class=\"added-material\">(e)\u2002The commissioner may examine those persons to whom permits are issued pursuant to this section to review compliance with the conditions of the permit and other applicable state law. \u2002The commissioner may disqualify an offering permitted pursuant to this section if he or she finds that the issuer has materially violated the provisions of its permit.<\/span><\/p>\n<\/div>\n<p><br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/p>\n<\/div>\n<\/div>\n<hr \/>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/\">CrowdSourceLawyers.com<\/a><\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":7,"featured_media":0,"parent":2019,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-2702","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Corporations Code - CORP 25113 - California Statutes<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/crowdsourcelawyers.com\/california-statutes\/california-statutes\/corporations-code-corp-25113\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Corporations Code - CORP 25113 - California Statutes\" \/>\n<meta property=\"og:url\" content=\"https:\/\/crowdsourcelawyers.com\/california-statutes\/california-statutes\/corporations-code-corp-25113\/\" \/>\n<meta property=\"og:site_name\" content=\"California Statutes\" \/>\n<meta property=\"article:modified_time\" content=\"2022-05-20T23:45:07+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/crowdsourcelawyers.com\\\/california-statutes\\\/california-statutes\\\/corporations-code-corp-25113\\\/\",\"url\":\"https:\\\/\\\/crowdsourcelawyers.com\\\/california-statutes\\\/california-statutes\\\/corporations-code-corp-25113\\\/\",\"name\":\"Corporations Code - CORP 25113 - California Statutes\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/crowdsourcelawyers.com\\\/california-statutes\\\/#website\"},\"datePublished\":\"2022-05-02T07:41:13+00:00\",\"dateModified\":\"2022-05-20T23:45:07+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/crowdsourcelawyers.com\\\/california-statutes\\\/california-statutes\\\/corporations-code-corp-25113\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/crowdsourcelawyers.com\\\/california-statutes\\\/california-statutes\\\/corporations-code-corp-25113\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/crowdsourcelawyers.com\\\/california-statutes\\\/california-statutes\\\/corporations-code-corp-25113\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/crowdsourcelawyers.com\\\/california-statutes\\\/california-statutes\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"California Statutes\",\"item\":\"https:\\\/\\\/crowdsourcelawyers.com\\\/california-statutes\\\/california-statutes\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Corporations Code &#8211; 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