Corp. Code, § 27101 · Chapter 2. Unlawful and Fraudulent Conduct
Corp. Code, § 27101
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
It is unlawful for any individual, directly or indirectly, in connection with the solicitation, receipt, or collection of, or solicitation of any subscription or contract to pay any contributions, fees, funds, or compensation of any kind, from any owner or holder of any security, for the purpose of protecting, enforcing, or representing the rights of the security owners or holders evidenced by the security, to do any of the following:
(a) Employ any device, scheme, or artifice to defraud.
(b) By means of any written or oral communication, make any untrue statement of a material fact, or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading.
(c) Engage in any transaction, act, practice, or course of business which operates or would operate as a fraud or deceit upon any person.
(d) Misappropriate or convert the funds, security, or property of any other person.
Notes and commentary — not statutory text
History
Repealed and added by Stats. 1996, Ch. 458, Sec. 9. Effective January 1, 1997.
Source of truth
- Edition
- As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
- Official file
- https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CORP§ionNum=27101.
- Text hash
- sha256 832a3a6a2cde3a8e12ff02f2dc67d5275b58a8ca2da99edf95eff016d171d83c
- Composed by
- compose_ca.py 2026-10-22: the Legislative Counsel's CAML content files read by a tokenizer (caml_readers.reader_a); an independent xml.etree reading (caml_readers.reader_b) agrees on every section
Cited by 1 provision
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Corporations Code
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.