NEW LAW REQUIRES BOARDS OF DIRECTORS TO INCLUDE WOMEN
General corporation law provides for the formation of domestic general corporations by the execution and filing of articles of incorporation with the Secretary of State. Under that law, the business and affairs of these corporations are generally managed by the direction of their boards of directors, and each director is elected by shareholder vote, with certain exceptions.
Governor Brown signed SB 826 into law on September 30, 2018. The bill imposes a new requirement on a domestic general corporation or foreign corporation that is a publicly held corporation whose principal executive offices are located in California. Under the new rules set forth in Section 301.3 of the California Corporations Code, a corporation must have a minimum of one female on its board of directors no later than the 2019 calendar year. The bill increases the minimum number required to two female directors by the close of the 2021 calendar year if the corporation has five directors or to three female directors if the corporation has six or more directors.To read more articles like this one, subscribe to the ALERT Newsletter today!