California's new General Corporation Law, which will go into effect on January 1, 1977, contains several sections which deal exclusively with close corporations. After considering the new law's definition of a close corporation, the mechanics of electing, revoking, and forfeiting close corporation status, and the statutory benefits such status will confer, the author examines the effectiveness of the new law in meeting the common problems encountered by close corporation participants in agreeing on the management of their corporation and the voting of their shares, in restricting the transfer of their stock, and in avoiding the loss of limited liability because of informal operation.
Kevin M. Hennessy,
Separate Statutory Treatment of the Close Corporation in California: Progress and Problems,
27 Hastings L.J. 433
Available at: https://repository.uchastings.edu/hastings_law_journal/vol27/iss2/5