Think Tank Adds to Pile of Lawsuits Challenging California's Board Diversity Laws | Corporate Counsel - Law.com

What You Need to Know

• California Gov. Gavin Newsom signed Assembly Bill 979 into law last year, but key deadlines are only now approaching.
• Under the law, boards of publicly held companies need to meet quotas for directors from underrepresented communities.
• In 2018, Newsom signed another bill into law that creates similar quotas for female board directors.

The National Center for Public Policy Research, a conservative think tank, has filed a federal lawsuit challenging a California law that requires corporate boards to meet a quota for diverse membership.

Assembly Bill 979 harms individual shareholder rights and “detracts from the goal of maximizing shareholder returns,” the think tank argued in the lawsuit filed Nov. 22. The think tank said it owns shares in a number of companies subject to the diversity quota, including Google parent company Alphabet, Apple, Cisco, Meta, Intel, Netflix, PayPal, Tesla, Twitter and Wells Fargo.

Want to continue reading?
Become an ALM Digital Reader for Free!

• Free access to 1 article* every 30 days
• Access to the entire ALM network of websites
• Unlimited access to the ALM suite of newsletters
• Build custom alerts on any search topic of your choosing
• Search by a wide range of topics

Already have an account? Sign In Now

*May exclude premium content

source: https://www.law.com/corpcounsel/2021/11/29/think-tank-adds-to-pile-of-lawsuits-challenging-californias-board-diversity-laws/

Your content is great. However, if any of the content contained herein violates any rights of yours, including those of copyright, please contact us immediately by e-mail at media[@]kissrpr.com.