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Corporate Governance Secretary of State

Allen Matkins

Should The Secretary Of State Accept Filings By Cannabis-Related Business Entities?

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Seven years ago, the California Secretary of State announced the debut of "Cannabizfile", a portal "for all information relevant to cannabis-related business and trademark filings with the Secretary of State".   According to...more

Allen Matkins

California's LLC Certificate of Cancellation - One Form That May Not Fit All

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The California Revised Uniform Limited Liability Company Act deals separately with the dissolution and cancellation of a California limited liability company and the cancellation of registration of a foreign limited liability...more

Allen Matkins

How Will The Secretary Of State Know A Corporation's Purpose?

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Yesterday I wrote about my concern that about the constitutionality of  SB 1168 (Limón).  This bill  would allow the California Secretary of State to cancel the articles of incorporation or the filing of a statement and...more

Allen Matkins

Does Bill Authorizing The Secretary Of State To Cancel Corporations Have An Illegitimate Purpose?

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Recently, I wrote that California Senator Monique Limón had introduced legislation, SB 1186, that would allow the Secretary of State to cancel the articles of incorporation or the filing of a statement and designation by a...more

Allen Matkins

Bill Would Vest Secretary Of State With Broad Powers To Cancel Business Entities

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Last month, California State Senator Monique Limón introduced a bill, SB 1168,  that would endow the California Secretary of State with the power to cancel the articles of a domestic corporation or the filing of a statement...more

Allen Matkins

What To Do When A Business Entity Has Been Wrongfully Begotten

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Over the years, I have been frequently called to assist in cases of wrongful termination. Rarely have I encountered the converse - the formation of an entity using a stolen identity.  Fortunately, the Civil Code has created a...more

Allen Matkins

Form Unknown? There's A Statute For That

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The California Code of Civil Procedure sets forth the general rules governing the service of summons.  Cal. Code Civ. Proc. §§ 415.10 - 415.95.  Chapter 17 of the General Corporation Law adds to these provisions.  In some...more

Allen Matkins

Do These 2022 Legislative Changes Require A Bylaw Refresh?

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During the 2021-2022 legislative session, the California Secretary of State sponsored legislation, 2022 Cal. Stats. ch. 617, making numerous changes to the Corporations Code in anticipation of the implementation of its...more

Allen Matkins

Nevada Enacts Law Permitting Correction Of Erroneous Corporate Filings

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In Chapter 9 of James Joyce's Ulysses, Stephen Dedalus proclaims "A man of genius makes no mistakes.  His errors are volitional and are the portals of discovery".  Alas, not every person filing a corporate record is a "man of...more

Allen Matkins

How Many Offices Must A California LLC Have?

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The California Revised Uniform Limited Liability Company Act contemplates requires that a California LLC have at least two types of offices - a principal office and a designated office....more

Allen Matkins

What Can Be Done If You Believe That You Were Improperly Appointed An Officer Or Director

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On occasion, someone might perceive that they have been improperly  appointed as a director or officer of a corporation.  If this unfortunate circumstance occur, is there any mechanism for publicly disclaiming the...more

Allen Matkins

Can Your Corporation's Or LLC's Name Be An Emoji?

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The word "emoji" is the romanization of two Japanese words (絵 and 文字) that together mean picture character.   Emojis essentially marry an ancient form of writing, pictography, to a modern technology, smart phones....more

Allen Matkins

Federal Court Rules California Board Quota Law Unconstitutional

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A little over a year ago, I wrote that California Superior Court Judge Terry Green had found that AB 979 facially violates the Equal Protection Clause of the California Constitution,  Cal. Const. Art. I, § 7.  Crest v....more

Allen Matkins

California Proposes Its Own Corporate Transparency Act For Non-California Corporations And Limited Liability Companies

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Earlier this week, Senator Melissa Hurtado amended her placeholding bill, SB 738, to flesh out her proposed Corporate Transparency Act.  As amended, the bill would require foreign corporations that register to transact...more

Allen Matkins

California Bill Would Require Climate-Related Financial Risk Reports

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On Monday, four California state senators introduced a bill, SB 261, that would require businesses to prepare and submit climate-related financial risk reports.  The bill would apply to any corporation or other business...more

Allen Matkins

What Is The Difference Between A Statement Of Conversion And A Certificate Of Conversion?

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The California Revised Uniform Limited Liability Company Act authorizes the conversion of a California limited liability company into an "other business entity", a "foreign other business entity", or a "foreign limited...more

Allen Matkins

Secretary Of State Creates Two New Revocation Forms

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A corporation with an "active-pending termination" status can be returned to Active status by filing a Revocation of Election to Terminate, also known as a Revocation of Election to Wind Up and Dissolve, that meets the...more

Allen Matkins

No Change Is Not An Option For 2023 LLC Filings

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In April, I wrote about AB 2431 which modifies the statement of information a statement requirement for LLCs.  In 2020, the legislature enacted AB 3075 (Gonzalez) to require that statements of information filed with the...more

Allen Matkins

SEC Doesn't Define It, But Insists That Every Issuer Have One

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This spring, John Jenkins reported that the Securities and Exchange Commission staff now declines to declare effective a registration statement if the issuer does not provide a physical address on the cover page of its...more

Allen Matkins

Documents Filed With The Secretary Of State Do Not Qualify For Anti-SLAPP Protection

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An individual formed a nonprofit public benefit corporation, Xi'an Jiaotung University Alumni Association of Norther California by filing articles of incorporation with the California Secretary of State.  Thereafter, he filed...more

Allen Matkins

Knowledge Of Restrictions Dooms Stock Transfers

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Two California statutes require that restrictions on transfer be included on share certificates.  Section 8204 of the Commercial Code  provides that "[a] restriction on transfer of a security . . . is ineffective against a...more

Allen Matkins

Where Have All The Articles Gone?

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The term "article" has an interesting etymology.  It is derived (via Latin) from the Ancient Greek word, ἄρθρον, meaning a bodily joint.  Articles, like joints, connect things together....more

Allen Matkins

For A Limited Time Only - California Is Giving Away Corporations, LLCs And More!

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 As a result of the recent enactment of California's 2022-2023 Budget Bill, the California Secretary of State's office as announced a temporary waiver of many business entity filing fees.  This waiver will last until June 30,...more

Allen Matkins

Section 2115's Peculiar Consolidation Rule

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Section 2115 of the California Corporations Code famously purports to impose numerous provisions of the General Corporation Law on foreign corporations if two tests are met.  One of these tests, the so-called "business...more

Allen Matkins

Why I Find This Case To Be So Confusing

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I recently came across Judge William Alsup's ruling in Carbon Crest, LLC v. Tencue Productions, LLC, 2022 U.S. Dist. LEXIS 66676.  However, the first two sentences of the ruling left me baffled...more

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