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Court Of Appeal Declines To "Sit On" Board Diversity Judgment

In July, California Secretary of State Shirley Weber filed a petition for a writ of supersedeas in the California Court of Appeal with respect to the trial court's judgment in Crest v. Padilla.  In that case, the trial court permanently enjoined and prohibited from expending or causing any expenditure of the estate, funds, or other property of the State of California on Corporations Code § 301.4 and so much of California Corporations Code §§ 301.3(d) and 2115.6 as pertains to Section 301.4.  Enacted two years ago, Section 301.4 required public company boards of directors to have specified numbers of members of underrepresented communities.  Last April, Los Angeles Superior Court Judge Terry A. Green found that the law  facially violates the Equal Protection Clause of the California Constitution,  Cal. Const. Art. I, § 7.  See Judge Green Explains Why AB 979 Violates The Constitution.

"Supersedeas" is a Latin word formed by the combination of "super" meaning upon or above and "sedere" meaning to sit.  When a Court of Appeal issues a writ of supersedeas it is quite literally telling the court "you should sit on it" ("supersedeas" is a second person, singular, subjunctive, active verb).  A writ of supersedeas suspends the enforcement of a trial court judgment or order while an appeal is pending.   Yesterday, the Second District Court of Appeal declined to tell the trial court to "sit on it" when it denied the Secretary of State's petition for a writ. 

© 2010-2023 Allen Matkins Leck Gamble Mallory & Natsis LLP National Law Review, Volume XII, Number 336
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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...

949-851-5428
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