Why California Can't Buy Stock

If you are looking to sell shares in your company to the State of California, you might want to reconsider.  Article XVI, Section 17 of the California Constitution expressly forbids the state from subscribing to, or being interested in the stock of...

Forsooth, Today Divides The Month

Today is, of course, the Ides of March.  The word "ides" is derived from the Latin word for the 15th of the month in March, May, July and October and the 13th in the other months.  The Latin word is derived from the still older Etruscan word meaning...

Time To Update Language Found In Most California Settlement Agreements

When settling claims, California lawyers will typically include a waiver of Civil Code Section 1542.  That statute generally provides that a general release does not extend to claims not known or suspected to exist at the time of executing the...

California Court Tackles Question Of When An Amendment Is A New Agreement

The parties to an agreement agree upon a change to the terms.  Should the change be labeled an "amendment" or a "new agreement".  Often this will simply be a question of nomenclature.  Sometimes, however, more the difference between an amendment and...

Test Your Knowledge Of California Corporate Law!

Over the years, I've made mental notes of some obscure California corporate law questions.  Can you identify the following types of corporations corporations?

How An $80 Mistake Led To $2,250 In Damages And More Than $86,000 In Attorney's Fees

Section 202(a) of the California Labor Code requires an employer to pay all wages within 72 hours when an employee resigns without notice.  In one recent case, the employer sent the requisite check on time, and the amount stated in numerals on the...

Have You Ever Been Plussed?

Recently, I came to consider the potential ambiguity in the word "nonplussed".  The word originally meant to be confused or perplexed, as in:

Are Footnotes Verboten?

Last week, Broc Romanek posed the question "whether it’s okay to use footnotes when you write".  My question for today is whether it is legal to use footnotes.  It turns out that this is a question that the California legislature has actually...

California Proposes To Base Tax Rate On Compensation Ratio

The California legislature may soon be considering a bill that would revise the tax rates for publicly held corporations based on their compensation ratios.  As introduced by Senator Nancy Skinner, SB 1398 would establish the following rates...

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