fbpx Skip to main content

Public Policy Newsletter Article

Deadline for State Law Requiring Women on Boards of Public Companies Fast Approaching

  • 2019-10-24T15:00:00.000+0000
  • California
  • Author: Jimmy Jackson

A recent academic study reported by the San Francisco Chronicle found that 14% of 488 California companies filing proxy statements still were out of compliance with a new California law signed by Governor Jerry Brown in 2018 (SB 826) requiring all publicly-held domestic or foreign corporations whose principal executive offices are located in California (regardless of where the company is incorporated) to have at least one woman on their Board of Directors by December 31, 2019. Although the authors did not name the companies, the article quotes the author as saying many of these companies were smaller biotech companies.

The Secretary of State established a webpage containing updated compliance reports as well as resources for companies trying to identify qualified board candidates. Companies found to be out of compliance with the new law may be fined $100,000 for a first violation, and $300,000 for subsequent violations. It is important to note there is no grace period for the new law.