California Code of Regulations
Title 10 - Investment
Chapter 3 - Commissioner of Financial Protection and Innovation
Subchapter 2 - Corporate Securities
Article 4 - Standards for the Exercise of the Commissioner's Authority
Subarticle 12 - Nonissuer Qualifications
Section 260.140.137 - Shell Companies

An application to qualify securities for nonissuer transactions should show that the issuer's assets are productively employed in the operation of an on-going business. Ordinarily an issuer showing annual gross receipts from operations of not less than $500,000 will be deemed to meet this requirement.

1. Editorial correction adding NOTE filed 3-9-83 (Register 83, No. 11).
2. Amendment filed 8-7-85; effective thirtieth day thereafter (Register 85, No. 32).

Note: Authority cited: Section 25610, Corporations Code. Reference: Sections 25131 and 25140, Corporations Code.