Cal. Code Regs. tit. 10, § 260.140.32
Promotional shares shall be equity securities without preference as to dividends, assets, or voting rights and shall have no greater rights per share than the securities issued for cash or its equivalent. Normally promotional shares should be subject to the waivers of dividends and assets as provided in Section 260.141 of these rules and to the legend condition restricting their transfer as provided in Section 260.141.1 of these rules.