§ 1871 Corporate Recordkeeping Compliance

Financial Code·California

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Key Takeaways

•Companies must follow the rules set by the commissioner for keeping their books and records.
•If a company doesn't follow these rules, they have to pay $100 for every day they break them.
•The rules were added in 2011 and started being enforced in 2012.

Example

A small business keeps messy financial records and ignores the commissioner's rules for organizing them.

The business will be fined $100 for each day they keep their records messy and don't follow the rules.

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

Official Source

View on CA.gov

§ 1871 Corporate Recordkeeping Compliance

Every corporation shall conform its methods of keeping its books and records to such orders in respect thereto as have been made and promulgated by the commissioner. Any corporation that refuses or neglects to obey such order shall be subject to a penalty of one hundred dollars ($100) for each day it so refuses or neglects. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 23, 2026

Key Terms

corporation commissioner books and records penalty

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 1871.

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Key Takeaways

Example

Key Terms

Related Statutes

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