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HomeCorporations CodeCh. 2Art. 4§ 7240 Charitable Trust Oversight

§ 7240 Charitable Trust Oversight

Corporations Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 7240 Charitable Trust Oversight

Key Takeaways

  • •If a company holds money or stuff for charity, the Attorney General can check if they're doing it right.
  • •The Attorney General can look into the company anytime to make sure they're following the rules.
  • •If the company isn't following the rules, the Attorney General can take them to court to fix it.

Example

A big company promises to give $100,000 to a school every year, but after 2 years, they only gave $50,000 each year.

The Attorney General can check the company's records and see they didn't give enough money. Then, they can take the company to court to make them give the rest of the money they promised.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 7240 Charitable Trust Oversight

A corporation holding assets in charitable trust is subject at all times to examination by the Attorney General, on behalf of the state, to ascertain to what extent, if at all, it has failed or is failing to comply with trusts it has assumed. In case of any such failure the Attorney General, in the name of the state, may institute against any person or persons the proceedings necessary to correct the failure. (Amended by Stats. 1979, Ch. 724.)

Last verified: January 23, 2026

Key Terms

charitable trustAttorney Generalcomply with trustsproceedings necessary to correct the failure

Related Statutes

  • § 5241 Corporate Trust Investment Deviation
  • § 7223 Director Removal For Misconduct
  • § 5142 Charitable Trust Enforcement Actions
  • § 7142 Charitable Trust Enforcement Actions
  • § 25533 Commissioner Referral To Prosecutors

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 7240.
View Official Source