Proposed Law Corporations Rules


As part of the State Bar's ongoing rule revision project, the State Bar rules for law corporations have been revised. The original Law Corporation Rules of The State Bar of California were adopted by the Board of Governors in 1968 and have since been amended, most recently in 1994.


For the most part, the rule revisions are not intended to substantially change current requirements, but include modifications that reflect current practice and enhance operational efficiency. One notable substantive change is described below under proposed rule 3.157 (F). If adopted, the proposed rules would become part of Title 3 of the Rules of the State Bar, which deals with Programs and Services.

The agenda item attached (Attachment 1) explains the preliminary revisions within the proposed rules, as presented by staff. At the November 13, 2009, meeting of the Board Committee on Member Involvement, Relations and Services additional amendments were discussed and incorporated into the proposed rules:

  • Proposed rule 3.157 (F) no longer excludes disbarred members from those members eligible to repurchase law corporation shares after reinstatement as a member. Members eligible for reinstatement otherwise regain the same duties and privileges of other members, and it has been suggested that the current rule is punitive.
  • Proposed rule 3.161 is further amended to simplify the language.

These amendments are formally provided in Attachment 2, and are reflected in the final version of the proposed rules (Attachment 3). The sixty-day comment period will run until January 15, 2010. If comments do not require substantive changes necessitating another comment period, the board will be asked to adopt the proposal at its March or May 2010 meeting for an effective date of July 1, 2010.




Board Committee on Member Involvement, Relations and Services


January 15, 2010


Debbie Yee
The State Bar of California
Office of Member Services
180 Howard Street
San Francisco, CA 94105
415-538-2305 Fax