omits, or concurs in omitting to make any material entry in any book of accounts, or other record or document kept by such corporation or association, is punishable by imprisonment in the state prison not less than three nor more than ten years, or by imprisonment in a county jail not exceeding one year, and a fine not exceeding five hundred dollars, or by both such fine and imprisonment.

Frauds in procuring organization, etc., of corporation: See ante, § 558.

California Jurisprudence: See articles Banks, vol. 4, p. 171; Corporations, vol. 7, p. 45.

Legislation § 563. 1. Enacted February 14, 1872; almost identical with Field's Draft, § 656.

2. Amended by Stats. 1901, p. 468; unconstitutional.. See note, § 5, ante.

563a. False Entry.

Any officer, director, trustee, employe or agent of any bank, [ ] who [willfully] makes a false or untrue entry in any book [or record or in any report, tag or statement of the business, affairs or condition [or in connection with any transaction of such bank,] with intent to deceive any officer, director or trustee thereof, or any agent or examiner, private or official, employed or lawfully appointed to examine into its condition or into any of its affairs [or transactions,] or any public officer, office or board to which such bank is required by law to report, or which has authority by law to examine into its affairs [or transactions,] or into any of its affairs [or transactions], or who, with like intent, willfully omits to make a new entry of any matter particularly pertaining to the business, property. [condition,] affairs, [transactions,] assets or accounts of such bank in any book, [record,] report, statement, or tag of such bank, [or who with like intent alters, abstracts, conceals or destroys any book, record, report, statement, or tag of such bank made, written or kept, or required to be] made, written or kept [ ] by him or under his direction, is guilty of a felony. (In effect 90 days from and after April 29, 1927. Stats. 1927, Chap. 749.) Pen. Code, 1927.

porations, vol. 7, p. 45.

Legislation § 563a. Added by Stats. 1917, p. 579.

$ 563b. Circulating false rumors regarding bank, Any

563c. [New.] Offenses Against or Concerning Building and Loan Associations; Penalty. Any person who wilfully and knowingly makes, circulates or transmits to another or others any statement or rumor, written, printed or by word of mouth, which is untrue in facts and is directly or by inference derogatory to the financial condition or affects the solvency or financial standing of any building and loan association, doing business in this state, or who knowingly counsels, aids, procures or induces another to start, transmit or circulate any such statement or rumor, is guilty of a misdemeanor punishable by a fine of not more than one thousand dollars or by imprisonment for not more than one year, or both. (In effect 30 days from and after April 29, 1927. Stats. 1927, Chap. 78.) Pen. Code, 1927.

Legislation § 563b. Added by Stats. 1917, p. 92.

§ 564. Officer of corporation publishing false reports, etc. Every director, officer, or agent of any corporation or joint-stock association, who knowingly concurs in making, publishing, or posting either generally or privately to the stockholders or other persons, any written report, exhibit, or statement of its affairs or pecuniary condition, or book or notice containing any material statement which is false, or any untrue or willfully or fraudulently exaggerated report, prospectus, account, statement of operations, values, business, profits, expenditures, or prospects, or any other paper or document intended to produce or give, or having a tendency to produce or give, the shares of stock in such corporation a greater value or a less apparent or market value than they really possess, or refuses to make any book or post any notice required by law, in the manner required by law, is guilty of a felony. [Amendment approved 1905; Stats. 1905, p. 683.]

False reports or frauds: See Civ. Code, § 316; ante, § 558.

California Jurisprudence: See articles Banks, vol. 4, p. 170; Corporations, vol. 7, p. 46.

Legislation § 564. 1. Enacted February 14, 1872 (almost identical with Field's Draft, § 657, N. Y. Pen. Code, § 611), and then read: "Every director, officer, or agent of any corporation or joint-stock association, who knowingly concurs in making or publishing any written report, exhibit, or statement of its affairs or pecuniary condition, containing any material statement which is false, other than such as are mentioned in this chapter, is guilty of a misdemeanor." 2. Amended by Code Amdts. 1875-76, p. 112, to read: "Every director, officer, or agent of any corporation or joint-stock association, who knowingly concurs in making, publishing, or posting any written report, exhibit, or statement of its affairs or pecuniary condition, or book or notice containing any material statement which is false, or refuses to make any book or post any notice required by law, in the manner required by law, other than such as are mentioned in this chapter, is guilty of a felony."

3. Amendment by Stats. 1901, p. 468; unconstitutional. See note, § 5, ante.

4. Amended by Stats. 1905, p. 683; the code commissioner saying, "The amendment is intended to incorporate in the section such pro'visions of the statute of 1877-78, p. 695, as are not already sufficiently expressed therein. That statute, however, is limited to corporations whose stock is listed on the stock board or exchange. The amendment omits this limitation, for the reason that its constitutionality is doubtful."

§ 565. Officer of corporation to permit an inspection. Every officer or agent of any corporation, having or keeping an office within this state, who has in his custody or control any book, paper, or document of such corporation, and who refuses to give to a stockholder or member of such corporation, lawfully demanding, during office hours, to inspect or take a copy of the same, or of any part thereof, a reasonable opportunity so to do, is guilty of a misdemeanor.

Records of corporation: See Civ. Code, §§ 377, 378.

California Jurisprudence: See article Corporations, vol. 7, p. 44. Legislation § 565. Enacted February 14, 1872; identical with Field's Draft, § 658.

§ 566. Officer of railroad company contracting debt in its behalf exceeding its available means. Every officer, agent, or stockholder of any railroad company, who knowingly assents to or has any agency in contracting any debt by or on behalf of such company, unauthorized by a special law for the purpose, the amount of which debt, with other debts of the company, exceeds its available means for the payment of its debts, in its possession, under its control, and belonging to it at the time such debt is contracted, including its bona fide and available stock subscriptions, and exclusive of its real estate, is guilty of a misdemeanor.

California Jurisprudence: See article Railroads.

Legislation § 566. Enacted February 14, 1872; identical with Field's Draft, § 662.

§ 567. Debt contracted in violation of last section not invalid. The last section does not affect the validity of a debt created in violation of its provisions, as against the company. California Jurisprudence; See article Railroads.

Legislation § 567. Enacted February 14, 1872; identical with Field's Draft, § 663.

§ 568. Director of a corporation presumed to have knowledge of its affairs. Every director of a corporation or jointstock association is deemed to possess such a knowledge of the affairs of his corporation as to enable him to determine whether any act, proceeding, or omission of its directors is a violation of this chapter.

California Jurisprudence: See article Corporations, vol. 7, p. 44. ́ Legislation § 568. Enacted February 14, 1872; identical with Field's Draft, § 664.

,་

§ 569. Director present at meeting, when presumed to have assented to proceedings. Every director of a corporation or joint-stock association who is present at a meeting of the directors at which any act, proceeding, or omission of such directors, in violation of this chapter occurs, is deemed to have concurred therein, unless he at the time causes or in writing requires his dissent therefrom to be entered in the minutes of the directors.

Presence of directors: See Civ. Code, §§ 309, 377.

California Jurisprudence: See article Corporations, vol. 7, p. 49. Legislation § 569. Enacted February 14, 1872; identical with Field's Draft, § 665.

§ 570. Director absent from meeting, when presumed to have assented to proceedings. Every director of a corpora

tion or joint-stock association, although not present at a meeting of the directors at which any act, proceeding, or omission of such directors, in violation of this chapter occurs, is deemed to have concurred therein, if the facts constituting such violation appear on the records or minutes of the proceedings of the board of directors, and he remains a director of the same company for six months thereafter, and does not within that time cause, or in writing require, his dissent from such illegality to be entered in the minutes of the directors.

California Jurisprudence: See article Corporations, vol. 7, p. 49. Legislation § 570. Enacted February 14, 1872; identical with Field's Draft, § 666.

§ 571. Foreign corporations. It is no defense to a prosecution for a violation of the provisions of this chapter, that the corporation was one created by the laws of another state, government, or country, if it was one carrying on business or keeping an office therefor within this state.

California Jurisprudence: See article Corporations, vol. 7, p. 48. Legislation § 571. Enacted February 14, 1872; identical with Field's Draft, § 667.

§ 572. "Director" defined. The term "director," as used in this chapter, embraces any of the persons having by law the direction or management of the affairs of a corporation, by whatever name such persons are described in its charter or known by law.

California Jurisprudence: See article Corporations, vol. 7, p. 48. Legislation § 572. Enacted February 14, 1872; identical with Field's Draft, § 668.

§ 573. Officer may not borrow cemetery corporation funds. No director or officer of any cemetery corporation or association shall, directly or indirectly, for himself or as the partner or agent of others, borrow any of the funds of such corporation or association, nor shall he become an indorser or surety for loans to others, nor in any manner be an obligor for moneys borrowed of or loaned by such corporation or association, nor shall a corporation of which a director or an officer is a stockholder or in which either of them is in any manner interested borrow any of such funds. The office of any director or officer who acts or permits action in contravention of the provisions of this section immediately thereupon becomes vacant and every director or officer authorizing or consenting to such loan, and the person who receives such loan, shall severally be guilty of a misde

meanor.

California Jurisprudence: See article Cemeteries, vol. 4, p. 1014.
Legislation § 573. Added by Stats. 1911, p. 344.

CHAPTER XIV.

Fraudulent Issue of Documents of Title to Merchandise.

§ 577.

Issuing fictitious bills of lading, etc.

§ 578.

Issuing fictitious warehouse receipts.

§ 579. Erroneous bills of lading or receipts issued in good faith excepted.

$580. Duplicate receipts must be marked "Duplicate."

§ 581.

§ 582.

Selling, hypothecating, or pledging property received for transportation or storage.

Bill of lading or receipt issued by warehouseman must be canceled on redelivery of the property. [Repealed.]

§ 583. Property demanded by process of law.

§ 577. Issuing fictitious bills of lading, etc. Every person, being the master, owner, or agent of any vessel, or officer or agent of any railroad, express, or transportation company, or otherwise being or representing any carrier, who delivers any bill of lading, receipt, or other voucher, by which it appears that any merchandise of any description has been shipped on board any vessel, or delivered to any railroad, express, or transportation company or other carrier, unless the same has been so shipped or delivered, and is at the time actually under the control of such carrier, or the master, owner, or agent of such vessel, or of some officer or agent of such company, to be forwarded as expressed in such bill of lading, receipt, or voucher, is punishable by imprisonment in the state prison not exceeding five years, or by a fine not exceeding one thousand dollars, or both.

False manifest, invoice, bill of lading, etc., issuing of: See ante, § 541; post, § 578.

Inducing carrier to issue bill where goods not received, punishment of: See Civ. Code, § 2131e.

Issuing bill containing false statements, punishment of: See Civ. Code, § 2131a.

Issuing of non-negotiable bill not so marked: See Civ. Code, Code, § 2131.

Issuing of nonnegotiable bill not so marked: See Civ. Code, § 2131f.

Negotiation of bill where goods not in carrier's possession, punishment of: See Civ. Code, § 2131d.

Negotiation of bill where one without title or goods subject to lien, punishment of: See Civ. Code, § 2131c.

California Jurisprudence: See article Carriers, vol. 4, p. 860. Legislation § 577. Enacted February 14, 1872; identical with Field's Draft, § 683, N. Y. Pen. Code, § 629.

§ 578. Issuing fictitious warehouse receipts. Every person carrying on the business of a warehouseman, wharfinger, or other depositary of property, who issues any receipt, bill of lading, or other voucher for any merchandise of any description, which has not been actually received