§ 1507. Issuance of shares.

(a) A professional service corporation may issue shares only to
individuals who are authorized by law to practice in this state a
profession which such corporation is authorized to practice and who are
or have been engaged in the practice of such profession in such
corporation or a predecessor entity, or who will engage in the practice
of such profession in such corporation within thirty days of the date
such shares are issued. No shareholder of a professional service
corporation shall enter into a voting trust agreement, proxy, or any
other type agreement vesting in another person, other than another
shareholder of the same corporation or a person who would be eligible to
become a shareholder if employed by the corporation, the authority to
exercise voting power of any or all of his shares. All shares issued,
agreements made, or proxies granted in violation of this section shall
be void.

(b) A design professional service corporation may issue shares to
individuals who are authorized by law to practice in this state a
profession which such corporation is authorized to practice and who are
or have been engaged in the practice of such profession in such
corporation or a predecessor entity, or who will engage in the practice
of such profession in such corporation within thirty days of the date
such shares are issued. A design professional service corporation may
also issue shares to employee stock ownership plans (ESOPs) and
employees of the corporation not licensed as design professionals,
provided that:

* (i) greater than seventy-five percent of the outstanding shares of
stock of the corporation are owned by design professionals,

* NB Effective until July 21, 2024

* (i) greater than seventy-five percent of the outstanding shares of
stock of the corporation are owned by design professionals and an ESOP
(or ESOPs) with greater than seventy-five percent of the plan's voting
trustees or greater than seventy-five percent of the plan's committee
members being design professionals,

* NB Effective July 21, 2024

* (ii) an ESOP, either in part or in its entirety, shall not
constitute part of the greater than seventy-five percent owned by design
professionals,

* NB Effective until July 21, 2024

* (ii) an ESOP, either in part or in its entirety, shall not
constitute part of the greater than seventy-five percent owned by design
professionals unless greater than seventy-five percent of the plan's
voting trustees or greater than seventy-five percent of the plan's
committee members are design professionals,

* NB Effective July 21, 2024

(iii) greater than seventy-five percent of the directors are design
professionals,

(iv) greater than seventy-five percent of the officers are design
professionals,

(v) the president, the chairperson of the board of directors and the
chief executive officer or officers are design professionals, and

(vi) the single largest shareholder is either a design professional or
an ESOP with greater than seventy-five percent of the plan's voting
trustees being design professionals and greater than seventy-five
percent of the plan's committee members being design professionals.

No shareholder of a design professional service corporation shall
enter into a voting trust agreement, proxy or any other type of
agreement vesting in another person, other than another shareholder of
the same corporation, the authority to exercise voting power of any or
all of his or her shares. All shares issued, agreements made or proxies
granted in violation of this section shall be void.

* (c) Any firm established for the business purpose of incorporating
as a professional service corporation pursuant to paragraph (h) of
section fifteen hundred three of this article may issue shares to
individuals who are authorized by law to practice in this state the
profession which such corporation is authorized to practice or who will
engage in the practice of such profession in such corporation within
thirty days of the date such shares are issued and may also issue shares
to employees of the corporation not licensed as certified public
accountants, provided that:

(i) at least a simple majority of the outstanding shares of stock of
the corporation are owned by certified public accountants,

(ii) at least a simple majority of the directors are certified public
accountants,

(iii) at least a simple majority of the officers are certified public
accountants,

(iv) the president, the chairperson of the board of directors and the
chief executive officer or officers are certified public accountants. No
shareholder of a professional service corporation established pursuant
to paragraph (h) of section fifteen hundred three of this article shall
enter into a voting trust agreement, proxy or any other type of
agreement vesting in another person, the authority to exercise voting
power of any or all of his or her shares. All agreements made or proxies
granted in violation of this section shall be void.

* NB Effective June 8, 2024