§ 2258 Foreign Corporation Penalties

This law says a foreign company that does business inside the state without following Chapter 21 can be fined between $500 and $1,000.

Key Takeaways

•Foreign companies must follow Chapter 21 when doing business inside the state.
•Violating that rule is a misdemeanor with a fine of $500‑$1,000.
•Who brings the case decides how the fine money is split.

Example

A foreign corporation opens a store in the state and sells products but never files the paperwork required by Chapter 21.

Because the company didn’t follow Chapter 21, the state can charge it a fine of $500‑$1,000. If a local district attorney brings the case, half of the fine goes to the county and half to the state; if the Attorney General brings it, the whole fine goes to the state.

How to Calculate

If prosecuted by a district attorney: County share = Fine ÷ 2, State share = Fine ÷ 2. If prosecuted by the Attorney General: State share = Fine.

Choose a fine amount between $500 and $1,000.
Decide who is prosecuting (district attorney or Attorney General).
Step 3a: If a district attorney, divide the fine by 2. One half goes to the county treasurer, the other half to the State Treasurer.
Step 3b: If the Attorney General, the entire fine goes to the State Treasurer.

The court sets the fine at $800 and the case is brought by the county district attorney.

Result: County gets $400 (800 ÷ 2) and the State gets $400 (800 ÷ 2).

Any foreign corporation subject to the provisions of Chapter 21 which transacts intrastate business without complying therewith is guilty of a misdemeanor, punishable by fine of not less than five hundred dollars ($500) nor more than one thousand dollars ($1,000), to be recovered in any court of competent jurisdiction. Prosecution under this section may be brought by the Attorney General or by any district attorney. If brought by the latter, one-half of the fine collected shall be paid to the treasurer of the county in which the conviction was had and one-half to the State Treasurer. If brought by the Attorney General the entire amount of fine collected shall be paid to the State Treasurer to the credit of the General Fund of the state. (Added by Stats. 1975, Ch. 682.)

This law says a foreign company that does business inside the state without following Chapter 21 can be fined between $500 and $1,000.

Key Takeaways

•Foreign companies must follow Chapter 21 when doing business inside the state.
•Violating that rule is a misdemeanor with a fine of $500‑$1,000.
•Who brings the case decides how the fine money is split.

Example

A foreign corporation opens a store in the state and sells products but never files the paperwork required by Chapter 21.

How to Calculate

If prosecuted by a district attorney: County share = Fine ÷ 2, State share = Fine ÷ 2. If prosecuted by the Attorney General: State share = Fine.

Choose a fine amount between $500 and $1,000.
Decide who is prosecuting (district attorney or Attorney General).
Step 3a: If a district attorney, divide the fine by 2. One half goes to the county treasurer, the other half to the State Treasurer.
Step 3b: If the Attorney General, the entire fine goes to the State Treasurer.

The court sets the fine at $800 and the case is brought by the county district attorney.

Result: County gets $400 (800 ÷ 2) and the State gets $400 (800 ÷ 2).

Key Takeaways

Example

How to Calculate

Key Terms

References

§ 2258 Foreign Corporation Penalties

Key Takeaways

Example

How to Calculate

Key Terms

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References