Professional Corporation Law

The Professional Corporation Law authorizes individuals licensed to practice a profession to organize a corporation for the purpose of rendering that professional service, applying the general business corporation law to such entities except where this act provides otherwise. It ties ownership and control to professional qualification — governing who may hold, transfer, or vote shares, who may serve as a director or officer, and what happens when a shareholder suffers a disqualifying event, including a procedure for the corporation to purchase the affected shares. It also preserves individual liability for negligent or wrongful acts, the privileged character of professional communications, and the regulatory authority of licensing boards, while setting requirements for the corporate name, periodic registration reports and fees, mergers, certificates of authority for foreign professional corporations, and forfeiture of corporate rights in specified circumstances.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.