09 September 2018

US Corporate Law News: California assembly passes board gender diversity bill

Gregory Pun
Associate | US

On August 30, 2018, the California Senate passed Senate Bill 826 requiring publicly traded companies based in California to have women on their board of directors, a day after the California Assembly passed the bill. If Governor Jerry Brown signs the bill, such California companies will be required to have at least one female director by December 31, 2019 or face fines of up to $300,000. By December 31, 2021, boards with five directors will be required to have at least two female directors and boards with six or more directors will be required to have at least three female directors. As of June 30, 2018, 20% of publicly traded California-based companies have 0 women on their boards. For more information see https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB826.

This article was written with contributions from Tim Piscatelli.

Gregory Pun Associate | Greenwich