New California Law Mandates Increased Diversity Among Corporate Board Directors
Posted Oct 28, 2020
On September 30, California AB 979 took effect. The new law amends the California Corporations Code to require that “a publicly held domestic or foreign corporation whose principal executive offices…are located in California” have on its board a minimum number of female directors or directors from an underrepresented community. The law defines “director from an underrepresented community” as “an individual who self-identifies as Black, African-American, Hispanic, Latino, Asian, Pacific Islander, Native Hawaiian, or Alaska Native, or who self-identifies as gay, lesbian, bisexual, or transgender.” Affected companies must meet these new requirements by the end of 2021 and report this information to the California Secretary of State. See JD Supra, Forbes.