LawWiki
HomeCodesSearchGlossaryAPIAbout
LawWiki

Plain English summaries of California law with zero-hallucination AI. Every summary is verified against official source text.

Product

  • Search
  • Codes
  • About

Legal

  • Privacy Policy
  • Terms of Service
  • Disclaimer

© 2026 LawWiki. All rights reserved.

HomeCorporations CodeCh. 2§ 205 Corporate Share Par Value

§ 205 Corporate Share Par Value

Corporations Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 205 Corporate Share Par Value

This law says that for any tax or fee that looks at a company's total value, every share the company could issue is treated as if it’s worth $1. If another law says the shares must have a different set value, the company’s board can pick that value instead.

Key Takeaways

  • •All authorized shares are treated as $1 each for tax‑or‑fee calculations unless another law says otherwise.
  • •If another law requires a different share value, the company’s board decides that value.
  • •To find the taxable amount, multiply the number of authorized shares by the applicable par value.

Example

A small tech startup is being taxed based on its total share value. It has 5,000 authorized shares. Because no other law forces a different share value, each share is counted as $1, so the tax authority treats the company’s capital as $5,000.

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

Official Source
View on CA.gov

§ 205 Corporate Share Par Value

Solely for the purpose of any statute or regulation imposing any tax or fee based upon the capitalization of a corporation, all authorized shares of a corporation organized under this division shall be deemed to have a nominal or par value of one dollar ($1) per share. If any federal or other statute or regulation applicable to a particular corporation requires that the shares of such corporation have a par value, such shares shall have the par value determined by the board in order to satisfy the requirements of such statute or regulation. (Added by Stats. 1975, Ch. 682.)

Last verified: January 10, 2026

Key Terms

nominal or par valuecapitalization of a corporationboardstatute or regulation

Related Statutes

  • § 12352 Board Committee Creation Authority
  • § 12353 Corporate Officer Requirements
  • § 211 Bylaw Adoption And Amendment
  • § 5212 Board Committee Creation Rules
  • § 7212 Board Committee Creation Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 205.
View Official Source