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News & Press: Sacramento Report

Board Representation Requirements Changed Under New California Law

Tuesday, December 18, 2018  
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Earlier this year Governor Brown signed Senate Bill 826 (Jackson) to modify representation requirements of boards of directors. Senate Bill 826 requires publicly traded corporations headquartered in California "to have a minimum of one female" on their board of directors by the end of 2019. Boards with six or more members must be comprised of at least three females by the end of 2021. Companies that fail to satisfy the law’s requirements face fines for non-compliance and fines for failing to report the gender ratio of their board to the Secretary of State.

Governor Brown’s signing message indicated that he was aware of the “serious legal concerns” and “potential flaws that indeed may prove fatal to [the law's] ultimate implementation.” Nevertheless, his message stated that “Given all the special privileges that corporations have enjoyed for so long, it’s high time corporate boards include the people who constitute more than half the 'persons' in America.”

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