Statute
California Corporations Code
125 published works
Canna Law Blog
You Own Part of a Cannabis Company. Can You See Its Books?
You own part of a cannabis company. Can you see its books? You invested in a cannabis company. Management sends occasional updates. Sales are “improving.” A new product is “getting…
Fennemore
Public Land, Canceled Shares: First District Court Upholds Mutual Water Company Stock Rule
By Fennemore
The First District California Court of Appeal has upheld a statutory rule that requires mutual water companies to cancel “appurtenant” shares held by public entities. The court rejected a constitutional…
For Purpose Law Group Blog
Starting Strong: California Nonprofit Formation Requirements Under the California Corporations Code
By May Harris
Starting a nonprofit in California involves navigating complex legal requirements under the California Corporations Code that can significantly impact your organization’s future success. Whether you’re launching a community health initiative,…
California Corporate & Securities Law Blog
Court Applies Internal Affairs Doctrine Even Though Statute Refers Only To Directors
Courts are wont to say that Section 2116 of the California Corporations Code codifies the internal affairs doctrine. See Villari v. Mozilo, 208 Cal. App. 4th 1470, 1478 n.8 (Cal. Ct.…
California Corporate & Securities Law Blog
If A Picture Is Worth A Thousand Words, Should Bylaws Have Pictures?
Nearly 13 years ago, I ruminated on the question of whether corporations are required to have bylaws. See Are Bylaws Required? As far as California is concerned, there is no requirement that…
California Corporate & Securities Law Blog
Does The Stock Market Believe That California's Board Diversity Mandates Enhance Firm Value?
In 2018 and 2020, California enacted laws mandating that publicly held corporations (as defined) having their principal executive offices in California have specified minimum numbers of directors who are female…
California Corporate & Securities Law Blog
Race/Gender/Ethnicity Based Share Restrictions
Yesterday's post took note of a proposed initial public offering by Bally's Chicago, Inc. that would impose a stockholder qualification based on race, gender and ethnic status. This qualification requirement…
California Corporate & Securities Law Blog
The One Where Everyone Got The Statute Wrong
In yesterday's post, I discussed the Court of Appeal's unpublished opinion in Milks v. Affirmed Techs., LLC, 2024 WL 1502944 (Cal. Ct. App. Apr. 5, 2024), reh'g denied (Apr. 30, 2024). That…
California Corporate & Securities Law Blog
California May Soon Define "Corporation" To Include Entities Are Decidely Not Corporations
The California Corporations Code is a misnomer. While the Corporations Code does in fact govern corporations, it also governs a wide variety of unincorporated entities, including general partnerships, limited partnerships,…
California Corporate & Securities Law Blog
Is This Statute The Most Anodyne And Meaningless Provision Of The California Corporations Code?
In 1989, the California legislature added Section 14200 to the California Corporations Code: The Legislature finds and declares that the formation of employee-owned businesses and the participation of employees in…