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California Corporate Governance Publicly-Traded Companies

Frost Brown Todd

California’s Climate Disclosure Rulemaking Enters a New Phase

Frost Brown Todd on

California’s requirements for climate-related corporate disclosures are evolving as the California Air Resources Board (CARB) continues to implement Senate Bill (SB) 253 and SB 261. Although these statutes were enacted in...more

Allen Matkins

Does The Stock Market Believe That California's Board Diversity Mandates Enhance Firm Value?

Allen Matkins on

In 2018 and 2020, California enacted laws mandating that publicly held corporations (as defined) having their principal executive offices in California have specified minimum numbers of directors who are female and from...more

Troutman Pepper Locke

California Law Highlights the Need to Prepare for Climate Disclosures

Troutman Pepper Locke on

The march toward mandated corporate disclosures for climate-related risks continues. Despite significant pushback and substantial legal challenges, state legislatures and regulators are continuing to advance laws and rules...more

Allen Matkins

Is A Change In Transfer Restrictions In A Shareholder Agreement Subject To Qualification?

Allen Matkins on

A recent post discussed whether amending a shareholders agreement is subject to qualification under the California Corporate Securities Law of 1968.  For the purpose of that discussion, it is important to recognize that not...more

Allen Matkins

Directors Removing Directors

Allen Matkins on

Seven years ago, I addressed the question of whether the board of directors of a California corporation could remove a fellow director...more

Alston & Bird

Sustainability Spotlight – Q1 2024

Alston & Bird on

Welcome to the inaugural edition of the Sustainability Spotlight, your place to keep up with all the ESG action – federal and state enforcement, shareholder proposals and litigation, and state attorney general actions. ...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

Allen Matkins

California Legislator Proposes To Enhance Criminal Fines For California, But Not Delaware, Business Entities

Allen Matkins on

In February of this year, California Assembly Member Jesse Gabriel introduced a bill making certain technical, nonsubstantive changes to a provision of the Penal Code concerning the removal of prison inmates for court...more

Allen Matkins

What Exactly Must A Board Approve When It Approves A Merger?

Allen Matkins on

Last Friday, John Jenkins wrote about another momentous ruling by Chancellor Kathaleen St. J. McCormick.  In Sjunde AP-Fonden v. Activision Blizzard, Inc., 2024 WL 863290 (Del. Ch. Feb. 29, 2024), she ruled...more

Proskauer - Regulatory & Compliance

Special Report: Primarily Non-Financial Corporate Reporting for U.S. Companies - Where to Start?

A wave of new legislation and regulation in the U.S. and Europe has the potential to significantly impact the non-financial reporting obligations of U.S. companies. With the myriad of requirements overlaid with varying...more

Allen Matkins

What Public Corporation Exists Without Ever Filing Articles Of Incorporation?

Allen Matkins on

The California General Corporation Law providers that the corporate existence begins upon filing of the articles.  Cal. Corp. Code § 200(c).  However, some California corporations have been birthed without the filing of...more

Allen Matkins

Abandoning Cumulative Voting Does Not Extend Term Of Office

Allen Matkins on

In November 2018, the citizens of Mission Viejo elected three persons to the City Council for two-year terms of office, rather than four years as prescribed by California Government Code section 57377.  This was done pursuant...more

K&L Gates LLP

California Enacts Landmark ESG Legislation

K&L Gates LLP on

Introduction - On 7 October 2023, California Governor Gavin Newsom signed into law landmark legislation mandating corporate climate and climate-related financial risk disclosures. Together, SB 253 and SB 261 apply to public...more

Sheppard Mullin Richter & Hampton LLP

Change is in the Air: Everything You Need to Know About California’s Sweeping New Climate Disclosure Laws

On October 7, 2023, California Governor Gavin Newsom signed into law two sweeping climate disclosure bills, Senate Bill 253 (“SB 253”), the Climate Corporate Data Accountability Act, and Senate Bill 261 (“SB 261”), the...more

Allen Matkins

May Directors Vote By Proxy?

Allen Matkins on

Neither California's nor Delaware's General Corporation Law expressly prohibits directors from being represented by proxy at board meetings.   However, it appears to have been well settled in Delaware since at least 1915 that...more

Allen Matkins

Does California Require "Reasonable Care" In A Board's Selection Of An Expert?

Allen Matkins on

Professor Stephen Bainbridge recently tackled the question of whether the business judgment rule applies to a corporate board's selection of an expert.   Section 141(e) of the Delaware General Corporation Law fully protects a...more

Fenwick & West LLP

California’s Proposed Bills Require Companies to Report on Climate Emissions and Risks

Fenwick & West LLP on

While all eyes are on proposed federal and European climate disclosure rules, the California legislature passed two climate-related bills that overlap somewhat with the Securities and Exchange Commission (SEC)’s proposed...more

Allen Matkins

A Field Guide To Issuer And Nonissuer Transactions

Allen Matkins on

The California Corporate Securities Law of 1968 applies a tripartite classification scheme to securities transactions.  Corporations Code Section 25110 requires qualification of issuer transactions; Section 25120 requires...more

Allen Matkins

Are Directors Employees And Are Their Homes Their "Workplaces"?

Allen Matkins on

There are potentially a number of ramifications to classifying a board member as employee, including whether the corporation may be entitled to obtain a workplace violence restraining order petition pursuant to Section 527.8...more

Allen Matkins

Judge Rules Beneficial Owner of Shares Lacks Standing to Bring Direct Claims Against Corporation and its CEO

Allen Matkins on

The plaintiffs in Chan v. ArcSOFT, Inc., 2023 WL 2788585, believed that they had been misled in a buyout of their shares and so they sued the company and its Chief Executive officer.  One of the plaintiffs, Marc Chan, did not...more

Allen Matkins

California Amends Corporations Code To Authorize Audio Option For Shareholder/Member Meetings

Allen Matkins on

Historically, a meeting necessarily meant a physical encounter.  Indeed, the word "meet" can be traced to the Anglo Saxon word metan which means to encounter or meet.  So it was that shareholder meetings involved the presence...more

Allen Matkins

Discerning When A Director Has Acted With "Reckless Disregard"

Allen Matkins on

Section 204(a)(10) of the California Corporations Code permits the articles of incorporation to include provisions eliminating or limiting the personal liability of a director for monetary damages in an action brought by or...more

Allen Matkins

Who Votes Pledged Shares?

Allen Matkins on

Under the California General Corporation Law, a shareholder whose shares are pledged is entitled to vote those shares until the shares have been transferred into the name of the pledgee.  Cal. Corp. Code § 702(c).   There are...more

Snell & Wilmer

Board Diversity Initiatives Falter in the Courts but Investor Interest Is Likely to Remain Strong

Snell & Wilmer on

Last year, Superior Courts in Los Angeles County invalidated two California statutes requiring specific diversity mandates for California public company boards (Senate Bill 826 “SB 826” and Assembly Bill 979 “AB 979”). The...more

Allen Matkins

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

Allen Matkins on

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

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