March 2023

Quotas for Corporate Boards

The state of California passed SB 826 in 2019 requiring that corporate boards had at least one director “who self-identifies her gender as a woman.  In 2020, Governor Newsom signed Assembly Bill 979 which mandated that boards of directors of California based publicly held domestic or foreign corporations satisfy racial, ethnicity, sexual preference and transgender status quotas.  On April 1, 2022, the Superior Court issued a ruling and opinion striking down AB 979’s diversity quotas and granting a permanent injunction in favor of Judicial Watch’s taxpayer clients enjoining the state from implementing the statute.