§ 251 Corporation Law Transition Definitions

Financial Code·California

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Key Takeaways

•This law helps figure out which rules apply to certain companies that were around before January 1, 1979.
•It calls the new rules the 'new law' and the old rules the 'prior law'.
•The 'effective date' is January 1, 1979, which is when the new rules started.

Example

Imagine a company that started in 1970. They need to know which rules to follow.

This law tells them that if they were around before January 1, 1979, they should look at the old rules (prior law) for some things and the new rules (new law) for others.

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

Official Source

View on CA.gov

§ 251 Corporation Law Transition Definitions

For purposes of Chapter 23 (commencing with Section 2300) of the new General Corporation Law, in the case of any subject institution existing on January 1, 1979: (a) The term “new law” shall mean the new General Corporation Law, subject, however, to the provisions of Section 101 of the revised Banking Law. (b) The term “prior law” shall mean the prior General Corporation Law, subject, however, to the provisions of Section 101 of the prior Banking Law. (c) The term “effective date” shall mean January 1, 1979. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)

Last verified: January 23, 2026

Key Terms

corporation new law prior law banking law fine institution

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 251.

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