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HomeBusiness and Professions CodeDiv. 2Ch. 9Art. 10§ 4154 Pharmacy Corporation Ownership Rules

§ 4154 Pharmacy Corporation Ownership Rules

Business and Professions Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 4154 Pharmacy Corporation Ownership Rules

Key Takeaways

  • •Pharmacy companies must have rules in their paperwork to make sure that if someone who owns part of the company can't own it anymore (like if they die or aren't allowed to), their part must be sold back to the company or the other owners.
  • •Pharmacy companies must have insurance or some other way to pay if a patient or customer sues them because of a mistake or problem with the services they provided.

Example

A pharmacist who owns part of a pharmacy dies, and their family inherits their share of the company.

The pharmacy's rules must say that the family has to sell that share back to the pharmacy or the other owners within a certain time. Also, if the pharmacy makes a mistake and gives the wrong medicine to someone, they must have insurance to cover the cost if that person gets hurt and sues them.

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

Official Source
View on CA.gov

§ 4154 Pharmacy Corporation Ownership Rules

The board may adopt and enforce regulations to carry out the purposes and objectives of this article, including regulations requiring (a) that the bylaws of a pharmacy corporation shall include a provision whereby the capital stock of the corporation owned by a disqualified person, as defined in Section 13401 of the Corporations Code, or a deceased person, shall be sold to the corporation or to the remaining shareholders of the corporation within the time as the regulations may provide, and (b) that a pharmacy corporation shall provide adequate security by insurance or otherwise for claims against it by its patients or clients arising out of the rendering of professional services. (Added by Stats. 1996, Ch. 890, Sec. 3. Effective January 1, 1997.)

Last verified: January 22, 2026

Key Terms

corporationinsuranceshareholderfinepatientstockclaimlien

Related Statutes

  • § 3167 Optometric Corporation Ownership Rules
  • § 4916 Veterinary Corporation Ownership Rules
  • § 4999.129 Professional Counselor Corporation Rules
  • § 5157 Accountancy Corporation Ownership Rules
  • § 6171 Law Corporation Ownership Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Business and Professions Code. Section 4154.
View Official Source