CORPORATIONS CODE
SECTION 22000-22003
22000. Every person who, without being authorized so to do,
subscribes the name of another to or inserts the name of another in
any prospectus, circular, or other advertisement, or announcement of
any joint stock association, existing or intended to be formed, with
intent to permit the document to be published, and thereby to lead
persons to believe that the person whose name is so subscribed is an
officer, agent, member, or promoter of such association, is guilty of
a misdemeanor.
22001. Every director, officer, or agent of any joint stock
association is guilty of a felony who knowingly concurs in making,
publishing, or posting either generally or privately to the
stockholders or other persons, any written report, exhibit, or
statement of its affairs or pecuniary condition, or book or notice
containing any material statement which is false, or any untrue or
wilfully or fraudulently exaggerated report, prospectus, account,
statement of operations, values, business, profits, expenditures, or
prospects, or any other paper or document intended to produce or
give, or having a tendency to produce or give, the shares of stock in
such association a greater value or a less apparent or market value
than they really possess.
22002. (a) Every director, officer, or agent of any joint stock
association, who knowingly receives or possesses himself of any
property of the association, otherwise than in payment of a just
demand, and, with intent to defraud, omits to make, or to cause or
direct to be made, a full and true entry thereof in the books or
accounts of the association, is guilty of a public offense.
(b) Every director, officer, agent, or member of any joint stock
association who, with intent to defraud, destroys, alters, mutilates,
or falsifies any of the books, papers, writings, or securities
belonging to the association, or makes or concurs in making any false
entries, or omits or concurs in omitting to make any material entry
in any book of accounts or other record or document kept by the
association, is guilty of a public offense.
(c) Each public offense specified in this section is punishable by
imprisonment pursuant to subdivision (h) of Section 1170 of the
Penal Code, or by imprisonment in a county jail not exceeding one
year, or a fine not exceeding one thousand dollars ($1,000), or by
both that fine and imprisonment.
22003. For the purposes of this part every director of a joint
stock association is deemed to possess such knowledge of the affairs
of his association as to enable him to determine whether any act,
proceeding, or omission of its directors is a violation of this part.
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