California Corporation Commission is a statutory authority whose job is to oversee the functioning of the department of corporations and also to frame policies for its proper functioning. The Commissioner, who is the chief executive officer, heads the commission. He is assisted by a team of officers who advise him on the day to day financial and other administrative operations. There is also a public relations officer who coordinates the activities of all the departments of the commission.
The main function of the commission is to inform and educate the general public on important financial and investment issues. In addition, the commission is also equipped with powers to enforce the law to protect innocent businessmen. For this, it has an enforcement division, which investigates the irregularities and other acts of omission and commission and brings the defaulters to book through the process of litigation.
There may be situations when in order to evade state taxes, people may not procure licenses to conduct their business. The commission investigates such cases and takes appropriate action against them. There may even be licensed corporations that violate the state law. The commission takes action, and in case of serious offences, files cases against them in the court of law. There may be other financial violations and fraudulent activities. The commission refers such cases to the District Attorney for prosecution.
The commission is invested with certain powers to stop violations of the law. Yet, it does not have the powers of the court of law. It can only report the cases to the court, but cannot act on behalf of the victims of fraud. However, the commission does cooperate with the lawyers of the victims by furnishing facts and figures. This goes a long way in helping them get back their money. It should, however, be clear that the investor has to find his legal resources to get the refunds. Also, the commission conducts its investigations in complete secrecy and the complaints of the aggrieved persons are not made public.
