Companies react to Calif. law requiring female board members

Companies will begin complying with a California law requiring female board members while waging a flurry of expected lawsuits, The Union-Bulletin in Walla Walla, Wash., reports.

“California’s new law requiring companies to include women on their boards of directors may not survive widely expected legal challenges but it has already spotlighted the entrenched practices and barriers that have helped keep women out of boardrooms,” the article notes.

By the end of next year, the law requires at least one female director on the board of public corporations headquartered in California.

“Companies with more than six board members would need three female directors by the end of 2021. Those with fewer than six members would need two women. …” the article explains.

“The law imposes a $100,000 fine for a first violation and a $300,000 penalty for subsequent violations, not huge sums for major corporations. Nevertheless, companies will likely begin efforts to comply with the law even as they keep track of — or participate in — legal efforts to block it, said Wendy Patrick, a professor of business ethics at San Diego State University,” the Union-Bulletin reports.