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What is a Quasi-California Corporation?

California State Flag, symbolizing a quasi-California corporation

This post is the result of my research on the duties of a director of a Delaware corporation that is located, and doing much of its business, in California. Specifically, I wanted to confirm that California law governed those duties, because it is a so-called quasi-California corporation.

Quasi-California Corporation Criteria

Corporations Code Section 2115 addresses non-California corporations for which (a) most voting shares are held by shareholders in California and (b) the average of the following three factors exceeds 50%.

  • The percentage of its property that is located in California.
  • The percentage of its payroll that is paid in California.
  • The percentage of its sales that take place in California.

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