California Requires Gender Diversity: Females Must Receive Positions on the Boards of Directors of Publicly Traded Companies
SUMMARY: By the end of 2019, all publicly held corporations, with their principal offices located in California, must have at least one female director on their boards. That number increases, given the number of members on the board, through the end of 2021. (Three female directors if the board has six or more directors, two female directors if the board has five directors, and one female director if the board has four or fewer directors.) The Secretary of State may impose fines of $100,000 for the first violation and $300,000 for each future violation.
Please contact Phillip Maltin for further information about these changes to California law..
TAKEAWAYS: We expect California businesses to challenge the constitutionality of this law. Meanwhile, businesses may wish to ensure that a compliance officer is monitoring these changes, and that the business is gender neutral in its hiring and payroll.