Cal. Code Regs. Tit. 10, § 260.141.2 - Removal of Conditions on Promotional Shares

Current through Register 2022 Notice Reg. No. 16, April 25, 2022

Upon application, the Commissioner may issue an order eliminating the conditions imposed on promotional shares when the issuer has demonstrated a satisfactory earnings record, if no other circumstances exist which would require the continuation of one or more of such conditions. The removal of such conditions is solely within the discretion of the Commissioner and no right is conferred by the imposition of such conditions upon the holders of shares other than promotional shares to their continuation. An earnings record will usually be considered satisfactory if the average annual earnings during a three-year period is equal to a reasonable return for the particular type of business on an amount determined by multiplying the total number of outstanding shares of the issuer by the average price at which the nonpromotional shares were originally issued and sold.

Notes

Cal. Code Regs. Tit. 10, § 260.141.2

Note: Authority cited: Section 25610, Corporations Code. Reference: Section 25141, Corporations Code.

1. Amendment of form filed 5-14-69; effective thirtieth day thereafter (Register 69, No. 20).
2. Amendment filed 1-4-77; effective thirtieth day thereafter (Register 77, No. 2).
3. Amendment refiled 1-7-77; effective thirtieth day thereafter (Register 77, No. 2).

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