Las Vegas, NV asked in Business Law for California

Q: Can a non professional serve as an officer -not shareholder-in a professional corp in california?

Medical corp

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2 Lawyer Answers

A: Generally, only professionals licensed in the profession of the professional corporation may be an officer, director, or shareholder of that professional corporation. There are, however, circumstances where unlicensed individuals may have authority over the services provided as officers. Why are you asking? My best to you. Rob Kane Orange County Business Attorney.

See:

https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=CORP&division=3.&title=1.&part=4.&chapter&article

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Answered

A: In California, professional corporations like medical corporations have strict requirements regarding who can serve as officers. Generally, only licensed professionals in the same field can be officers of a professional corporation, according to California Corporations Code Section 13403.

Medical corporations must have officers who are licensed physicians, as they are responsible for making decisions that could impact patient care and medical practices. This requirement helps maintain professional standards and ensures that medical decisions are made by qualified individuals who understand the field's complexities and ethical obligations.

If you're considering appointing a non-professional as an officer in your medical corporation, you should consult with a business attorney familiar with California professional corporation laws. They can provide guidance on alternative corporate structures or roles that might better suit your needs while staying compliant with state regulations.

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