Who: Publicly-traded corporations
When: December 31, 2019
Former California Governor Brown signed legislation that by the end of December 2019, publicly held corporations must have at least 1 female board member.
By the end of 2021, if a board has 5 directors, at least 2 members will need to be women, and a board with 6 directors will need at least 3 women.
The California Secretary of State may impose fines for any violations of the bill. A first violation will be fined $100,000, and a second or additional violation(s) will be fined the amount of $300,000. It should be noted that a female director who has held a seat for at least a portion of the calendar year isn’t considered a violation. If a seat isn’t held by a female during at least a portion of the calendar year, it is considered a violation.
- If this new law applies to your company, review your current board members to determine if you are compliant with the new law.
- Assess board member term lengths and strategize how best to recruit female board members.
Article provided by KPA and written by Emily Hartman.