§ 4153 Pharmacy Income Disqualified Shareholders

Business and Professions Code·California

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Key Takeaways

•If a pharmacy owner is not allowed to own a pharmacy (like if they lost their license), the money made from the pharmacy's work can't go to them.
•The pharmacy can't pay or give any profits to the owner who is not allowed to own it.
•This rule is to stop people who shouldn't own pharmacies from making money off them.

Example

A pharmacist loses their license because they did something wrong, but they still own part of a pharmacy.

The pharmacy can't give any of the money it makes from selling medicine to this pharmacist, even if they own part of the business.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 4153 Pharmacy Income Disqualified Shareholders

The income of a pharmacy corporation attributable to professional services rendered while a shareholder is a disqualified person, as defined in Section 13401 of the Corporations Code, shall not in any manner accrue to the benefit of the shareholder or his or her shares in the pharmacy corporation. (Added by Stats. 1996, Ch. 890, Sec. 3. Effective January 1, 1997.)

Last verified: January 22, 2026

Key Terms

corporation disqualified person benefit pharmacy shareholder fine

References

Official text at leginfo.legislature.ca.gov
California Legislature. Business and Professions Code. Section 4153.

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Key Takeaways

Example

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Related Statutes

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