State Codes and Statutes
Statutes > California > Corp > 14045-14052CORPORATIONS CODE
SECTION 14045-14052
14045. Upon approval by the director to become a corporation, the entity shall adopt or amend its articles of incorporation to comply with the following: (a) The name of the corporation shall include the words "small business financial development corporation," except for those corporations formed pursuant to this part prior to 2002, which may also be called "small business development corporations," or those formed prior to 1985, which may also be called "rural or urban development corporations." (b) The purposes for which the corporation is formed, which shall be those specified in Section 14002. This requirement shall not be deemed to preclude a statement of powers. (c) A geographical description of the corporation's service area. (d) The name and addresses of seven or more persons who are to act in the capacity of directors until the selection of their successors. (e) That the corporation is organized pursuant to the California Small Business Financial Development Corporation Law. 14046. If the board recommends acceptance upon the basis of the facts disclosed by the investigation provided by subdivision (d) of Section 14022 and finds that the proposed incorporation meets all the requirements of this chapter, the director shall approve the articles of incorporation and endorse the approval thereon and forward the same to the Secretary of State for his or her approval and filing. Likewise, the director shall recommend approval or disapproval of all amendments to the articles. The director shall endorse the approval on the amendatory document before the document is forwarded to the Secretary of State for his or her approval and filing. 14047. The corporation's existence as a small business development corporation begins upon the filing of the articles with the Secretary of State and continues perpetually, unless otherwise expressly provided for by law. 14048. Any request for proposal for selection of a corporation shall require the winning bidder to adopt or amend its bylaws to include provisions governing the election and qualification of directors; the establishment and functions of loan committees of the corporation; and the method of selecting the representative of the corporation on the board. The bylaws shall provide for removal of officers only by a two-thirds vote of the directors of the corporation. 14049. Each corporation shall have provisions establishing a grievance procedure for employees, clients, or potential clients, to appeal a decision or obtain redress of an action done by the staff or loan committee of the corporation. The procedures shall be established in writing during the probationary period of a new corporation. 14050. The board may authorize the establishment of a new corporation using a request for proposal process. 14051. The Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of this title) applies to corporations formed under this chapter, except as to matters otherwise provided for in this chapter. 14052. For six months following the establishment of a corporation, commencing upon filing of the articles of incorporation with the Secretary of State, a corporation shall be on probation. While on probation, a corporation may be suspended if suspension is recommended by the director. This suspension is nonappealable and not subject to the procedures for suspension applicable to a corporation not on probation.
