BILL NUMBER: AB 1471	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Perea

                        FEBRUARY 27, 2015

   An act to amend Section 201 of the Corporations Code, relating to
corporations.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1471, as introduced, Perea. Business entity name reservations.
   Existing law, the General Corporations law, authorizes the
Secretary of State, upon payment of a fee by the applicant, to issue
a certificate of reservation of any name, not otherwise prohibited.
   The bill would make a nonsubstantive change.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 201 of the Corporations Code is amended to
read:
   201.  (a) The Secretary of State shall not file articles setting
forth a name in which "bank," " trust," "trustee," or related words
appear, unless the certificate of approval of the Commissioner of
Business Oversight is attached thereto. This subdivision does not
apply to the articles of any corporation subject to the Banking Law
on which is endorsed the approval of the Commissioner of Business
Oversight.
   (b) The Secretary of State shall not file articles which set forth
a name which is likely to mislead the public or which is the same
as, or resembles so closely as to tend to deceive, the name of a
domestic corporation, the name of a foreign corporation which is
authorized to transact intrastate business or has registered its name
pursuant to Section 2101, a name which a foreign corporation has
assumed under subdivision (b) of Section 2106, a name which will
become the record name of a domestic or foreign corporation upon the
effective date of a filed corporate instrument where there is a
delayed effective date pursuant to subdivision (c) of Section 110 or
subdivision (c) of Section 5008, or a name which is under reservation
for another corporation pursuant to this title, except that a
corporation may adopt a name that is substantially the same as an
existing domestic corporation or foreign corporation which is
authorized to transact intrastate business or has registered its name
pursuant to Section 2101, upon proof of consent by such domestic or
foreign corporation and a finding by the Secretary of State that
under the circumstances the public is not likely to be misled.

   The 
    (c)     The  use by a corporation of a
name in violation of this section may be enjoined notwithstanding
the filing of its articles by the Secretary of State. 
   (c) 
    (d)  Any applicant may, upon payment of the fee
prescribed therefor in  Article 3 (commencing with Section 12180)
of Chapter 3 of Part 2 of Division 3 of Title 2 of  the
Government Code, obtain from the Secretary of State a certificate of
reservation of any name not prohibited by subdivision (b), and upon
the issuance of the certificate the name stated therein shall be
reserved for a period of 60 days. The Secretary of State shall not,
however, issue certificates reserving the same name for two or more
consecutive 60-day periods to the same applicant or for the use or
benefit of the same person, partnership, firm or corporation; nor
shall consecutive reservations be made by or for the use or benefit
of the same person, partnership, firm or corporation of names so
similar as to fall within the prohibitions of subdivision (b).