News & Analysis as of

Board of Directors Secretary of State

Allen Matkins

Knowingly Offering A False Annual Statement For Filing With The Secretary Of State Is A Felony

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The Statement of Information required pursuant to California Corporations Code Section 1502 is not required to be signed under penalty of perjury.  However, the statute does require that the corporation (not the individual...more

Allen Matkins

How Will The Secretary Of State Know A Corporation's Purpose?

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Yesterday I wrote about my concern that about the constitutionality of  SB 1168 (Limón).  This bill  would allow the California Secretary of State to cancel the articles of incorporation or the filing of a statement and...more

Allen Matkins

Bill Would Vest Secretary Of State With Broad Powers To Cancel Business Entities

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Last month, California State Senator Monique Limón introduced a bill, SB 1168,  that would endow the California Secretary of State with the power to cancel the articles of a domestic corporation or the filing of a statement...more

Allen Matkins

When It Comes To Service Not Every Domestic Corporation Is A Corporation

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Yesterday's post mentioned mentioned Chapter 17 of the California General Corporation Law which governs service of process in addition to the provisions of the California Code of Civil Procedure.  Corporations Code Section...more

Allen Matkins

Form Unknown? There's A Statute For That

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The California Code of Civil Procedure sets forth the general rules governing the service of summons.  Cal. Code Civ. Proc. §§ 415.10 - 415.95.  Chapter 17 of the General Corporation Law adds to these provisions.  In some...more

Allen Matkins

Do These 2022 Legislative Changes Require A Bylaw Refresh?

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During the 2021-2022 legislative session, the California Secretary of State sponsored legislation, 2022 Cal. Stats. ch. 617, making numerous changes to the Corporations Code in anticipation of the implementation of its...more

Allen Matkins

Nevada Enacts Law Permitting Correction Of Erroneous Corporate Filings

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In Chapter 9 of James Joyce's Ulysses, Stephen Dedalus proclaims "A man of genius makes no mistakes.  His errors are volitional and are the portals of discovery".  Alas, not every person filing a corporate record is a "man of...more

Allen Matkins

What Can Be Done If You Believe That You Were Improperly Appointed An Officer Or Director

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On occasion, someone might perceive that they have been improperly  appointed as a director or officer of a corporation.  If this unfortunate circumstance occur, is there any mechanism for publicly disclaiming the...more

Allen Matkins

Can Your Corporation's Or LLC's Name Be An Emoji?

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The word "emoji" is the romanization of two Japanese words (絵 and 文字) that together mean picture character.   Emojis essentially marry an ancient form of writing, pictography, to a modern technology, smart phones....more

Allen Matkins

Federal Court Rules California Board Quota Law Unconstitutional

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A little over a year ago, I wrote that California Superior Court Judge Terry Green had found that AB 979 facially violates the Equal Protection Clause of the California Constitution,  Cal. Const. Art. I, § 7.  Crest v....more

Allen Matkins

California Bill Would Require Climate-Related Financial Risk Reports

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On Monday, four California state senators introduced a bill, SB 261, that would require businesses to prepare and submit climate-related financial risk reports.  The bill would apply to any corporation or other business...more

Allen Matkins

SEC Doesn't Define It, But Insists That Every Issuer Have One

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This spring, John Jenkins reported that the Securities and Exchange Commission staff now declines to declare effective a registration statement if the issuer does not provide a physical address on the cover page of its...more

Allen Matkins

Documents Filed With The Secretary Of State Do Not Qualify For Anti-SLAPP Protection

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An individual formed a nonprofit public benefit corporation, Xi'an Jiaotung University Alumni Association of Norther California by filing articles of incorporation with the California Secretary of State.  Thereafter, he filed...more

Allen Matkins

Where Have All The Articles Gone?

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The term "article" has an interesting etymology.  It is derived (via Latin) from the Ancient Greek word, ἄρθρον, meaning a bodily joint.  Articles, like joints, connect things together....more

Allen Matkins

For A Limited Time Only - California Is Giving Away Corporations, LLCs And More!

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 As a result of the recent enactment of California's 2022-2023 Budget Bill, the California Secretary of State's office as announced a temporary waiver of many business entity filing fees.  This waiver will last until June 30,...more

Allen Matkins

Section 2115's Peculiar Consolidation Rule

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Section 2115 of the California Corporations Code famously purports to impose numerous provisions of the General Corporation Law on foreign corporations if two tests are met.  One of these tests, the so-called "business...more

Allen Matkins

Why I Find This Case To Be So Confusing

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I recently came across Judge William Alsup's ruling in Carbon Crest, LLC v. Tencue Productions, LLC, 2022 U.S. Dist. LEXIS 66676.  However, the first two sentences of the ruling left me baffled...more

Allen Matkins

Why This CLA Sponsored Bill Obfuscates Rather Than Clarifies LLC Filings

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In 2020, the legislature enacted AB 3075 (Gonzalez) which, among other things, requires a corporation or an LLC to disclose in its statement of information filed with the Secretary of State whether any director of the...more

Wilson Sonsini Goodrich & Rosati

Court Rules Against California's Mandated Underrepresented Communities Board Diversity Law

On April 1, 2022, a Superior Court judge in Los Angeles struck down California's landmark legislation requiring representation of "underrepresented communities" on the boards of publicly held companies based in California....more

Allen Matkins

Plaintiffs Prevail In Constitutional Challenge To California Board Quota Law

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This afternoon, Judge Terry Green granted the plaintiff's summary judgment motion in a case challenging the constitutionality of AB 979.  Crest v. Padilla, LA Super. Ct. Case No. 20STCV37513...more

Allen Matkins

Does Improving CalPERS' Returns Justify State Mandated Discrimination?

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We may learn as early as today whether a pending constitutional challenge to AB 979 will be going to trial in May.  AB 979 is California's law requiring publicly held domestic and foreign corporations having their principal...more

Allen Matkins

California To Transition To Enhanced Bizfile

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The Business Programs Division is the largest division of the California Secretary of State's office.  Each year, the Business Programs Division processes millions of business filings and information requests each year. ...more

Allen Matkins

California Secretary of State's Report Highlights California's Want of Appeal

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The California Secretary of State has recently published her report under California's statutes imposing gender and racial/ethnic quotas on the boards of directors of publicly held corporations having their principal...more

Allen Matkins

A "New Fine Question" For This Proxy Season

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In consequence of the enactment of AB 3025 in 2020, the California Secretary of State has added a new question to the Statement of Information (Form SI-550) required to be filed annually by California stock, agricultural...more

Allen Matkins

Some Information That You Won't Find On The Secretary Of State's Website

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The California Secretary of State's website provides certain information with respect to a wide range of domestic and foreign entities registered to transact intrastate business, including corporations, limited liability...more

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