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Corporate Governance Board of Directors State and Local Government

DarrowEverett LLP

How New Delaware Amendments Impact Stockholder, Merger Agreements

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Over the summer, Delaware enacted a number of amendments to the General Corporation Law of the State of Delaware (the “DGCL”). The amendments were largely crafted in response to several recent decisions by the Delaware...more

Allen Matkins

Strangers In A Strange Land - In California, Bumblebees, Crabs and Snails Are Fishes And A General Partnership May Soon Be A...

Allen Matkins on

In California, some things are not what they seem.  Here, a bumblebee, a crab or snail can be a fish, but a goldfish may not be a fish. Now, a bill is pending in the California legislature which threatens even more violence...more

Skadden, Arps, Slate, Meagher & Flom LLP

Hot Topics: AI and ESG

The US Government Is Using AI To Detect Potential Wrongdoing, and Companies Should Too With agencies such as the SEC and DOJ using AI and other data analytics tools extensively to detect wrongdoing, companies need to adopt...more

Perkins Coie

California Court Overturns Board Gender Diversity Statute

Perkins Coie on

A Los Angeles Superior Court judge struck down California’s board gender diversity statute on May 13, 2022. The court found that Senate Bill 826 violated the California Constitution’s Equal Protection Clause....more

Sheppard Mullin Richter & Hampton LLP

Los Angeles Superior Court Invalidates California Board Diversity Statute, Rendering It Ripe for Review by the California Court of...

In Crest v. Padilla, No. 20STCV37513 (Cal. Super. Apr. 1, 2022), the Superior Court of California for the County of Los Angeles (Green, J.) declared that Section 301.4 of the California Corporations Code is unconstitutional...more

Sheppard Mullin Richter & Hampton LLP

California Court of Appeal Addresses Derivative Standing and Failure of Oversight Claims Under Delaware Law

In Tola v. Bryant, No. 16150, 2022 Cal. App. LEXIS 241 (Cal. App. Mar. 24, 2022), the First Appellate District of the California Court of Appeal applied Delaware’s new formulation of the test for determining whether a...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

Allen Matkins on

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

Jackson Lewis P.C.

Challenges to California’s Board Diversity Statutes

Jackson Lewis P.C. on

Building on board gender diversity requirements, California passed Assembly Bill (AB) 979 in 2020. This statute requires publicly held corporations headquartered in California to diversify their boards of directors with...more

Allen Matkins

What Is And Is Not Mandatory With Respect To California's Female Director Quota Law

Allen Matkins on

On Monday, I noted that because California's female director quota law uses the word "shall", it is mandatory.  Confused?  Here's how I break down the law...more

Allen Matkins

Does A Statutory Fine Constitute A "Threat"?

Allen Matkins on

As the trial of of the constitutionality of SB 826, California's female director quota, law continues, the question of the plaintiffs' standing remains in contention.  As I reported in June of last year, Judge Maureen...more

Allen Matkins

Secretary Of State Argues SB 826 Does Not Require An Impermissible Quota

Allen Matkins on

SB 826 is scheduled to go on trial today before Los Angeles Superior Court Judge Maureen Duffy-Lewis.  Crest v. Weber, Cal. Super. Ct. Case No. 19STCV27561.   SB 826 requires all publicly held corporations headquartered in...more

Allen Matkins

Challenges To California Director Quota Law Keep Coming

Allen Matkins on

It should be a surprise to no one that California's laws imposing strict gender and diversity requirements on publicly held corporations continue to attract legal challenges.  Tomorrow, a trial is scheduled to begin in...more

Allen Matkins

PEO Versus PPB

Allen Matkins on

California's female and underrepresented community board quota statutes apply to publicly held corporations having their principal executive offices in California "according to the corporation's SEC 10-K form".  Cal. Corp....more

Allen Matkins

Secretary Of State Claims "Round Robin" Board Selection Process Solves Discrimination

Allen Matkins on

In seeking dismissal of a federal court challenge to California's director quota mandates, the California Secretary of State argues "SB 826 and AB 979 guarantees that a corporation can appoint new directors through a race-...more

Allen Matkins

California's Female Director Quota Statute Is Now Headed For Trial

Allen Matkins on

California Superior Court Judge Maureen Duffy-Lewis issued her ruling yesterday on the parties' respective motions for summary judgment in Crest v. Padilla (Cal. Super. Ct. Case No. 19STCV27561).  In this case, the plaintiffs...more

Allen Matkins

Ruling May Be Imminent In Female Director Quota Challenge

Allen Matkins on

Readers may recall that there are at least two challenges to California's female director quota mandate (aka SB 826).  In June, the Ninth Circuit Court of Appeals resurrected one suit by holding that the challenger has...more

Smith Anderson

2021 Amendments to the North Carolina Business Corporation Act

Smith Anderson on

The North Carolina General Assembly recently approved Senate Bill 507 (the "Act"), which makes a number of significant changes to the North Carolina Business Corporation Act ("NCBCA"), and the governor signed the Act into law...more

Allen Matkins

New Challenge Filed To California Board Quota Laws

Allen Matkins on

Earlier this month, a Texas non-profit membership association filed a complaint in the United States District Court for the Western District of California, Alliance For Fair Board Recruitment v. Weber, Case No....more

Allen Matkins

9th Circuit: Shareholder Is Injured When California Requires Or Encourages Discrimination

Allen Matkins on

In 2018, California enacted SB 826 to impose female director quotas on publicly held domestic or foreign corporation whose principal executive offices, according to the corporation’s SEC 10-K form, are located in California. ...more

Allen Matkins

Constitutional Challenge To AB 979 Moving Toward A Trial

Allen Matkins on

The constitutional infirmity of California's legislation, AB 979, mandating minimum numbers of directors was well known to the legislators.  Both the Assembly and Senate floor analyses noted that earlier legislation mandating...more

Allen Matkins

They Went Where?

Allen Matkins on

According to the California Secretary of State's Women on Board report, 22 publicly held corporations moved their principal executive offices out of California.  These data were based on a comparison of annual reports filed...more

Fenwick & West LLP

Corporate Governance Survey - 2020 Proxy Season Results

Fenwick & West LLP on

Corporate governance practices vary significantly among public companies. This is a reflection of many factors, including: • Differences in the stage of development of companies, including the relative importance placed on...more

Fenwick & West LLP

Glass Lewis Announces 2021 Proxy Voting Policy Guidelines

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Glass Lewis announced updates to its United States Proxy Voting Policy Guidelines late November 2020. The 2021 Proxy Voting Policy Guidelines include a variety of changes from the 2020 version, including new provisions...more

Gray Reed

California’s Push For Diverse Corporate Boards

Gray Reed on

California Assembly Bill 929 (the “Diversity Bill”), which was passed by the California State Legislature on August 30, 2020, and signed into law by California Governor Gavin Newsom on September 30, 2020, requires domestic...more

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