Page 9 - Corporations Code News Today

I was perplexed by Judge Cindee F. Mayfield's repeated references to "derivate claims" in a recent unpublished opinion - JBB Investment Partners v. Fair, Cal. Ct. of Appeal Case No. No. A160098 (June 9, 2022).

The Section 800 of the California Corporations Code statute governs actions instituted or maintained in right of any domestic or foreign corporation. These are commonly referred to as derivative actions but the statute does not denominate them as such.

I was perplexed by Judge Cindee F. Mayfield's repeated references to "derivate claims" in a recent unpublished opinion - JBB Investment Partners v. Fair, Cal. Ct. of Appeal Case No. No....

For the purposes of this part every director of a joint stock association is deemed to possess such knowledge of the affairs of his association as to enable him to determine whether...

California Corporations Code Section 22003 effectively deems directors to be all-knowing...

What is a joint stock association, a group of individuals organized into an association similar to a partnership, but, unlike a partnership, having stock divided into shares transferable by the owner. Partners, might associate themselves in a joint stock company with transferable shares

California courts struck down second board diversity law. Decision affects California's gender diversity requirement for boards of directors. Law requiring publicly held companies to appoint certain number of underrepresented community board members met similar result.

California courts have now struck down the second of the state’s two board diversity laws as unconstitutional.  The recent decision affects California's gender diversity requirement for...

With statutes, it can be dangerous to rely on plain meaning

In 2011, I posed the following question: Is Privity Required Or Not Required Under Section 25500? Section 25500 of the California Corporations Code provides the remedy for violations of Section 25400...