Chapter 9 - Proceedings Against Corporations

California Penal Code — §§ 1390-1398

Sections (7)

Amended by Stats. 1971, Ch. 1591.

Upon the filing of an accusatory pleading against a corporation, the court shall issue a summons, signed by the judge with his name of office, requiring the corporation to appear before him, at a specified time and place, to answer the charge, the time to be not less than 10 days after the issuing of the summons.

Amended by Stats. 1971, Ch. 1591.

The summons shall be substantially in the following form:

County of (as the case may be).

The people of the State of California to the (naming the corporation):

You are hereby summoned to appear before me at (naming the place), on (specifying the day and hour), to answer an accusatory pleading, for (designating the offense generally).

Dated this ____ day of ____, 19__.

G. H., Judge, (name of the court).

Amended by Stats. 1973, Ch. 248.

The summons must be served at least five days before the day of appearance fixed therein, by delivering a copy thereof and showing the original to the president or other head of the corporation, or to the secretary, cashier, managing agent, or an agent of the corporation designated for service of civil process.

Amended by Stats. 1971, Ch. 1591.

At the appointed time in the summons, the magistrate shall proceed with the charge in the same manner as in other cases.

Amended by Stats. 1973, Ch. 718.

If an accusatory pleading is filed, the corporation may appear by counsel to answer the same, except that in the case of misdemeanors arising from operation of motor vehicles, or of infractions arising from operation of motor vehicles, a corporation may appear by its president, vice president, secretary or managing agent for the purpose of entering a plea of guilty. If it does not thus appear, a plea of not guilty shall be entered, and the same proceedings had thereon as in other cases.

Amended by Stats. 1982, Ch. 497, Sec. 140. Operative July 1, 1983, by Sec. 185 of Ch. 497.

When a fine is imposed upon a corporation on conviction, it may be collected by virtue of the order imposing it in the manner provided for enforcement of money judgments generally.

Added by Stats. 2024, Ch. 651, Sec. 3. (AB 2432) Effective January 1, 2025.

(a)In addition to any other penalty or fine provided by law, if a corporation is convicted of a misdemeanor or felony offense, the court may order the corporation to pay an additional fine, known as the corporate white collar criminal enhancement, pursuant to this section.
(b)The court may determine the amount of the fine. The fine shall not exceed the greater of either of the following:
(1)Two times the value of the taking or loss, whichever is greater, if the offense resulted in the taking

of, or loss to,

another person’s or entity’s money, labor, or real or personal property.

(2)Twenty-five million dollars ($25,000,000).
(c)In determining the amount of the fine under this section, the court shall consider all of the following:
(1)The nature and seriousness of the offense.
(2)The number of offenses committed.
(3)The persistence of the criminal conduct.
(4)The length of time over which the criminal conduct occurred.
(5)The willfulness of the corporation’s criminal

conduct.

(6)The corporation’s assets, liabilities, and net worth, if available to the court.
(d)If, after a hearing in open court, the judge exercises their discretion in assessing the fine, they shall state the reason on the record.
(e)Any moneys collected pursuant to this section shall be

deposited into the California Crime Victims Fund established under Section 13839.

(f)For purposes of this section, a “corporation” means a firm, association, organization, partnership, business trust, company, corporation, limited liability company, public entity, or any other legal entity.