News & Analysis as of

Diversity Shareholders California

Allen Matkins

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

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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

Wilson Sonsini Goodrich & Rosati

Court Rules Against California’s Mandated Board Diversity for Second Time and Strikes Down Gender Diversity Law

On May 13, 2022, a Los Angeles Superior Court judge struck down California's legislation requiring representation of women on the boards of publicly held companies with principal executive offices in California. The law,...more

Allen Matkins

Judge Finds California Female Director Quota Law To Be Unconstitutional

Allen Matkins on

Following a lengthy trial, Los Angeles Superior Court Judge Maureen Duffy-Lewis has found that California's female director quota law violates the Equal Protection Clause of the California Constitution...more

Allen Matkins

More On Board Nominations

Allen Matkins on

Yesterday's discussion of an amicus brief filed by 17 law professors in a case challenging SB 826, California's female director quota mandate, reminded me of a related question that I raised a few years ago...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

Judge Green Explains Why AB 979 Violates The Constitution

Allen Matkins on

When I reported last Friday that Los Angeles Superior Court Judge Terry Green had ruled in favor of the plaintiffs in their challenge to California's board quota law, AB 979, all I had was a brief minute order from the...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

Legislator Proposes To Expand Definition of "Director From An Underrepresented Community"

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Enacted in 2020, AB 979 requires publicly held domestic or foreign corporations having their principal executive offices in California to have specified minimum numbers of directors from "underrepresented communities".  Cal....more

Allen Matkins

Judge Weighs Challenge To California Board Quota Law

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On Monday,  Los Angeles Superior Court Judge Terry Green heard arguments on opposing motions for summary judgment in a case challenging the constitutionality of AB 979.  Crest v. Padilla, L.A. Super. Ct. Case No....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

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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

Does The Secretary Of State Misapprehend California's Board Quota Requirement?

Allen Matkins on

As noted in prior posts, the Secretary of State has filed a motion to dismiss a federal court challenge to California's director quota laws (SB 826 and AB 979).   The Secretary's brief includes several remarkable and...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

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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

Allen Matkins

Court Orders Discovery In Derivative Action Challenging Racial Diversity

Allen Matkins on

Last year, the City of Pontiac General Employees' Retirement System filed a derivative suit against the Board of Directors and Chief Executive Officer of Cisco Systems, Inc.  The gist of the complaint was that the "Defendants...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

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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

California Bill Would Require Minimum Numbers Of Members Of Underrepresented Communities On State Boards And Commissions

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In 2018, California enacted legislation requiring publicly held corporations having their principal executive offices in the state to have minimum numbers of female directors.  2018 Cal. Stats. ch. 954.  Despite pending...more

Allen Matkins

They Went Where?

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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

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