A Corporation May Get Religion, But Not Easily

Section 206 of the California Corporations Code provides that a corporation organized under the General Corporation Law may engage in any "business activity", subject to any limitation contained in its articles of incorporation and compliance with...

Claw Backs And Preemption

Last week, the Securities and Exchange Commission announced that it was reopening the comment period on proposed rules for listing standards for the recovery of erroneously awarded compensation.   One issue that I doubt that they are looking for is...

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

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 troubling assertions.  For...

Can A Corporation Change Its Board Size In Proprio Motu?

As noted in yesterday's post, Secretary of State Shirley N. Weber is asking U.S. District Court Judge R. Gary Klausner to dismiss a challenge to California's board quota statutes.   In her motion to dismiss, the Secretary of State advances the...

State Seeks Dismissal Of Federal Court Challenge To California Quota Laws

In July, a Texas non-profit membership association filed a complaint in the United States District Court for the Central District (Western Division) of California, Alliance For Fair Board Recruitment v. Weber, Case No. 2:21-cv-05644-RGK-RAO (July...

Identity Thief Impersonates DFPI

It seems that no one's identity is immune from theft, including financial regulators.  Last week, the California Department of Financial Protection & Innovation announced that it received a complaint from a California resident regarding an email...

A New Book Of Exodus

And these are the names of California companies who came out of California . . . .  The California Policy Center, which describes itself as "an educational non-profit working for the prosperity of all Californians by eliminating public-sector...

DFPI Issues Report On California Finance Lenders

As 2021 begins drawing to close, the Department of Financial Protection & Innovation has released its 2020 Annual Report of Finance Lenders, Brokers, and PACE Administrators Licensed Under the California Financing Law.   According to the report, the...

Study Throws Wet Blanket On Other Constituency Statutes

An "other constituency statute" permit, but do not require, boards of directors to consider non-shareholder interests (such as the interests of employees, the environment, et cetera) when making decisions.  California and Delaware are among a...

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