When I first began practicing law, conversion was a subject for religious, not corporate, law. Now, the California Corporations Code authorizes a broad range of conversion transactions. Unfortunately, the conversion statutes require a careful understanding of numerous defined terms. For example, California Corporations Code Section 1151 authorizes the conversion of a “corporation” (defined in Section 162) into a “domestic other business entity” (defined in Section 1150(e) by reference to Section 167.7).

When a business entity converts, is there a need to be concerned about the Corporate Securities Law of 1968.....