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. 22§ 2252 Fraudulent Stock Subscription Signing

§ 2252 Fraudulent Stock Subscription Signing

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

§ 2252 Fraudulent Stock Subscription Signing

This law says it's a crime to sign a stock purchase form using a made‑up name, or to sign for someone who can't or won't keep the promises in the agreement.

Key Takeaways

  • •Never use a fake name on a stock purchase or agreement.
  • •Don't sign a stock agreement for someone who has no money or doesn't plan to follow the terms.
  • •Doing either can lead to a misdemeanor (a small criminal charge).

Example

Sam signs a stock subscription paper using the name "Alex Smith" even though Alex doesn't exist, hoping to get shares for free.

Because Sam used a fake name, the law says Sam can be charged with a minor crime.

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

Official Source
View on CA.gov

§ 2252 Fraudulent Stock Subscription Signing

Every person (a) who signs the name of a fictitious person to any subscription for or agreement to take stock in any domestic or foreign corporation, existing or proposed, or (b) who signs to any subscription or agreement the name of any person, knowing that the person has no means or does not intend in good faith to comply with all the terms thereof or that there is any understanding or agreement that the terms of the subscription or agreement are not to be complied with or enforced, is guilty of a misdemeanor. (Added by Stats. 1975, Ch. 682.)

Last verified: January 10, 2026

Key Terms

fictitious personsubscriptionagreementmisdemeanor

Related Statutes

  • § 2251 Fraudulent Securities Issuance Penalty
  • § 2253 Director Fraudulent Dividend Liability
  • § 2257 Unauthorized Corporate Name Use
  • § 2258 Foreign Corporation Penalties
  • § 2259 Unauthorized Foreign Business Transactions

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 2252.
View Official Source