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California's Early Warning System
Mandatory Notification of False or Misleading Reports
(Corporations Code Sections 2207 and 17655)
Effective January 1, 2004, a publicly-traded California corporation or limited liability company must notify the Department of Corporations and its investors within 30 days if:
- An officer, director, manager or agent of the company has made a material statement intended to give the company's securities a greater market value than they really possess;
- The company refuses to make an accounting entry or post any notice required by law; or
- The company misstates or conceals from a regulator a material fact, in order to deceive the regulator.
Failure to comply with the notification requirement will subject the company to a civil penalty of up to $1 million.
Notices should be sent to the Department of Corporations at the following address:
Department of Corporations
Consumer Services Office
1515 K Street, Suite 200
Sacramento, CA 95814
If you have questions about filing this notice, please call our Consumer Services Office toll-free at: 1-866-ASK-CORP (1-866-275-2677)