Maine Revised Statutes Title 13 Sec. 741 – Issuance of shares
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1. Qualified shareholders. A professional corporation may issue shares, fractional shares and rights or options to purchase shares only to:
A. Individuals who are authorized by law in this State or another state to render a professional service described in the corporation’s articles of incorporation; [PL 2001, c. 640, Pt. B, §2 (NEW); PL 2001, c. 640, Pt. B, §7 (AFF).]
A-1. Nonlicensed individuals authorized to organize with licensed individuals pursuant to section 732, subsection 3; [PL 2003, c. 344, Pt. D, §7 (NEW).]
B. General partnerships in which all the partners are qualified persons with respect to the professional corporation and in which at least one partner is authorized by law in this State to render a professional service described in the corporation’s articles of incorporation; [PL 2001, c. 640, Pt. B, §2 (NEW); PL 2001, c. 640, Pt. B, §7 (AFF).]
C. Professional corporations, professional limited liability companies or professional limited liability partnerships, domestic or foreign, authorized by law in this State to render a professional service described in the corporation’s articles of incorporation; [PL 2003, c. 344, Pt. B, §4 (AMD).]
D. Any other entity that is authorized by law to provide the same professional service provided by the professional corporation; or [PL 2003, c. 344, Pt. B, §4 (AMD).]
E. Any other person or entity, including employee stock ownership plans or programs and other employee ownership programs, that the licensing authority with jurisdiction over the professional corporation determines is qualified to hold shares of such a professional corporation. [PL 2003, c. 344, Pt. B, §5 (NEW).]
[PL 2003, c. 344, Pt. B, §§4, 5 (AMD); PL 2003, c. 344, Pt. D, §7 (AMD).]
Terms Used In Maine Revised Statutes Title 13 Sec. 741
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Disqualified person: means an individual or entity that for any reason is or becomes ineligible under this chapter to be issued shares by a professional corporation. See Maine Revised Statutes Title 13 Sec. 723
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Professional corporation: means a corporation for profit, other than a foreign professional corporation, subject to the provisions of this chapter. See Maine Revised Statutes Title 13 Sec. 723
- Professional service: means the professional services provided by the following persons to the extent they are required to be licensed under state law:
2. Licensing authority jurisdiction. If a licensing authority with jurisdiction over a profession considers it necessary to prevent violation of the ethical standards of the profession, the authority may adopt rules under its general rule-making authority or other regulatory authority to restrict or condition, or revoke in part, the authority of professional corporations subject to its jurisdiction to issue shares. A rule described in this subsection does not, of itself, make a shareholder of a professional corporation at the time the rule becomes effective a disqualified person.
[PL 2001, c. 640, Pt. B, §2 (NEW); PL 2001, c. 640, Pt. B, §7 (AFF).]
3. Unlawful shares void. Shares issued in violation of this section or a rule described in subsection 2 are void.
[PL 2001, c. 640, Pt. B, §2 (NEW); PL 2001, c. 640, Pt. B, §7 (AFF).]
SECTION HISTORY
PL 2001, c. 640, §B2 (NEW). PL 2001, c. 640, §B7 (AFF). PL 2003, c. 344, §§B4,5,D7 (AMD).