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HomeCorporations CodeCh. 2§ 27100 Security Owner Representation Fees

§ 27100 Security Owner Representation Fees

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

§ 27100 Security Owner Representation Fees

Key Takeaways

  • •If you ask for money from people who own stocks or investments to help protect their rights, this law applies to you.
  • •This includes collecting fees or donations for things like fighting for stockholders' rights.
  • •You can't just take money from investors without following the rules in this law.

Example

If you start a group that asks stockholders for money to sue a company for them, you must follow this law.

The law says you can't just take money from people who own stocks unless you follow the rules for protecting their rights.

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

Official Source
View on CA.gov

§ 27100 Security Owner Representation Fees

Any individual who, within this state, solicits, receives, collects, or solicits any subscription or contract to pay, any contributions, fees, funds, or compensation of any kind, from any owner or holder of any security, for the purpose of protecting, enforcing, or representing the rights of the security owners or holders evidenced by the security, shall be subject to the provisions of this division. (Repealed and added by Stats. 1996, Ch. 458, Sec. 9. Effective January 1, 1997.)

Last verified: January 23, 2026

Key Terms

solicitsreceivescollectssubscriptioncontract to paycontributionsfeesfundscompensationsecurityprotectingenforcingrepresentingrights of the security owners or holders

Related Statutes

  • § 13242 Corporate Bylaws Governance Rules
  • § 25116 Usury Exemption For Securities
  • § 25218 Broker-Dealer Transaction Rules
  • § 5233 Director Self-Dealing Rules
  • § 5235 Director Compensation Limits

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 27100.
View Official Source