January 18, 2021

Volume XI, Number 18

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January 18, 2021

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Bill Threatens Further Obfuscation Of California's Board Quota Law

Two years ago, California State Senator Hannah-Beth Jackson introduced a bill imposing gender quotas on publicly held domestic or foreign corporations having their principal executive offices in California.  Then Governor Brown admitted "I don't minimize the potential flaws that indeed may prove fatal to its ultimate implementation."  Despite these concerns, he signed the bill into law.  The bill is currently facing at least two challenges.  

Sitting or Standing, Directors Are Still Directors

Senator Jackson introduced a bill, SB 1142, earlier this week that would amend the law (Cal. Corp. Code § 301.3) to specify that the minimum number of female directors is based on the number of sitting directors.  Presumably, "sitting" is intended to refer to the directors then in office.  However, this begs the question of when the number of sitting directors is to be determined.  The bill makes several other technical changes that further obfuscate rather than illuminate the law and does nothing to address the manifest unconstitutionality of the law.

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© 2010-2020 Allen Matkins Leck Gamble Mallory & Natsis LLP National Law Review, Volume X, Number 52
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About this Author

Keith Paul Bishop, Corporate Transactions Lawyer, finance securities attorney, Allen Matkins Law Firm
Partner

Keith Bishop works with privately held and publicly traded companies on federal and state corporate and securities transactions, compliance, and governance matters. He is highly-regarded for his in-depth knowledge of the distinctive corporate and regulatory requirements faced by corporations in the state of California.

While many law firms have a great deal of expertise in federal or Delaware corporate law, Keith’s specific focus on California corporate and securities law is uncommon. A former California state regulator of securities and financial institutions, Keith has decades of...

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