I had blogged way back when about a California bill introduced by Judy Chu that went beyond what the controversial SEC proposal. After significant pushback from all quarters – including CalPERS – legislator Chu introduced a resolution in support of the SEC rules, which won overwhelming support in both branches of the Legislature.
At that time, Chu also agreed to amend her bill to require that companies provide a process in which shareholders could merely “recommend” candidates for election as directors and that they file the process with the secretary of state. In June, the bill went through yet another round of tweaking in the California Senate Judiciary Committee, which eliminated the “recommend” clause and turned it into simply a disclosure bill. This disclosure bill would require publicly traded companies to file a copy of their corporate election procedures – or those portions of the company’s articles of incorporation and bylaws that related to nominating and electing directors – with the secretary of state.
The bill will be heard by the Senate Appropriations Committee on August 2nd. Now only the state Department of Corporations remains opposed to the bill because it believes the issue should be addressed by the SEC.
Crying in My Spilt Milk
As I head off for a vacation next week, I need to get my “moving da office” woes off my chest…no Internet access for two weeks…cross-talk from a radio station on my phone…losing my wallet in a cab…I need a vacation. Julie Hoffman will be blogging next week for your entertainment.