ARTICLE 2. Definitions [28030. - 28049.]

Cal. Corporations Code - CORP 2.
in effect

Cal. Corporations Code - CORP § 28030. Section 28030.

Subject to additional definitions contained in this division which are applicable to specific provisions of this division, and unless the context otherwise requires, the definitions in this article apply throughout this division.

Cal. Corporations Code - CORP § 28031. Section 28031.

“Accredited investor” means a person who is defined in Section 2(a)(15) of the Securities Act of 1933, or any other person that the Securities and Exchange Commission may so designate by rule, regulation, or order, who, by purchasing the securities of a licensee, provides the investment funds with which the licensee will provide financial assistance to small business firms.

Cal. Corporations Code - CORP § 28034. Section 28034.

“Company” means a corporation, limited partnership, limited liability company, or other form of business entity, which is organized under the laws of the State of California.

Cal. Corporations Code - CORP § 28035. Section 28035.

“Control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a specified person.

Cal. Corporations Code - CORP § 28036. Section 28036.

“Controlling person,” when used with respect to a specified person, means any person who controls the specified person, directly or indirectly, through one or more intermediaries.

Cal. Corporations Code - CORP § 28037. Section 28037.

“Insolvent,” when used with respect to any person, means a person who has ceased to pay his or her debts in the ordinary course of business, who cannot pay his or her debts as they become due, or whose liabilities exceed his or her assets.

Cal. Corporations Code - CORP § 28040. Section 28040.

“Officer” means either of the following: (a) When used with respect to a corporation, any person appointed or designated as an officer of the corporation by or pursuant to applicable law or the articles of incorporation or bylaws of the corporation or any person who performs with respect to the corporation functions usually performed by an officer of a corporation. (b) When used with respect to a specified person other than a natural person or a corporation, any person who performs with respect to the specified person functions usually performed by an officer of a corporation with respect to the corporation.

Cal. Corporations Code - CORP § 28041. Section 28041.

“Order” means any approval, consent, authorization, exemption, denial, prohibition, or requirement applicable to a specific case issued by the commissioner. “Order” includes any condition of a license and any agreement made by any person with the commissioner under this division.

Cal. Corporations Code - CORP § 28042. Section 28042.

“Parent,” when used with respect to a specified person other than a natural person, means any person other than a natural person that controls the specified person, directly or indirectly, through one or more intermediaries.

Cal. Corporations Code - CORP § 28043. Section 28043.

“Person” means any natural person, proprietorship, joint venture, partnership, trust, business trust, syndicate, association, joint stock company, corporation, limited liability company, government, agency of any government, or any other organization. However, “person,” when used with respect to acquiring control of or controlling a specified person, includes any combination of two or more persons acting in concert.

Cal. Corporations Code - CORP § 28044. Section 28044.

“Principal security holder,” means any person who owns, directly or indirectly, of record or beneficially, securities representing 10 percent or more of the voting power of the issuer of those securities.

Cal. Corporations Code - CORP § 28045. Section 28045.

“To provide financing assistance to a person” means to purchase securities issued by the person, either directly from the person, or indirectly through a securities underwriter.

Cal. Corporations Code - CORP § 28047. Section 28047.

“Small business firm” means a person that proposes to transact, or transacts, business on a regular and continuous basis in California and, together with its affiliates, has a net worth of not more than eighteen million dollars ($18,000,000) and average net income after federal income taxes, excluding any carryover losses, for the preceding two years no greater than six million dollars ($6,000,000).

Cal. Corporations Code - CORP § 28047.1. Section 28047.1.

“Smaller business firm” means a person that proposes to transact, or transacts, business on a regular and continuous basis in California and, together with its affiliates, has a net worth of not more than six million dollars ($6,000,000), and average net income after federal income taxes, excluding any carryover losses, for the preceding two years no greater than two million dollars ($2,000,000).

Cal. Corporations Code - CORP § 28048. Section 28048.

“Subsidiary,” when used with respect to a specified person other than a natural person, means any person other than a natural person controlled by the specified person, directly or indirectly, through one or more intermediaries.
Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026

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