California Board Composition Statute Challenged
Last year, California passed a statute requiring, for any public
corporation either incorporated or having its principal place of business in
California, that it have on its Board of Directors a minimum number of women.
That minimum number is set on a sliding scale based upon the total number of
directors. HERE IS A LINK to my earlier posting on that statute.
The legislative review of the statute indicated that there was a
significant risk of litigation, Then Governor Brown, when signing the legislation,
noted that “serious legal concerns have been raised” with respect to its requirements.
He also noted that “I don’t minimize the potential flaws that indeed may prove
fatal to its ultimate implementation.”
Those observations have turned out to be prophetic; suit has been
filed in California challenging are their requirements. The complaint asserts
that “the legislation’s quota system for female representation on corporate
boards employees express gender classifications. As a result, SP 826 is immediately suspect and presumptively invalid
and triggers strict scrutiny review.“
No comments:
Post a Comment