Section 3503.

Any officers, directors, employees, or agents of a flexible purpose corporation who do any of the following shall be liable jointly and severally for all the damages resulting therefrom to the flexible purpose corporation or any person injured by those actions who relied on those actions or to both:

(a) Make, issue, deliver or publish any prospectus, report, including the reports required pursuant to subdivision (b) of Section 3500 and Section 3501, circular, certificate, financial statement, balance sheet, public notice, or document respecting the flexible purpose corporation or its shares, assets, liabilities, capital, dividends, business, earnings, or accounts which is false in any material respect, knowing it to be false, or participate in the making, issuance, delivery, or publication thereof with knowledge that the same is false in a material respect.

(b) Make or cause to be made in the books, minutes, records or accounts of a flexible purpose corporation any entry that is false in any material particular knowing it to be false.

(c) Remove, erase, alter, or cancel any entry in any books or records of the flexible purpose corporation, with intent to deceive.

(d) With respect to the reports required pursuant to subdivision (b) of Section 3500 and Section 3501, omit to state any material fact necessary in order to make the statements contained therein, in light of the circumstances under which those statements were made, not misleading in a material respect, knowing the omission to be misleading.

(Added by Stats. 2011, Ch. 740, Sec. 12. Effective January 1, 2012.)