We all want to see the world become a better place, and there are ways of doing it, but California has yet to figure them out. They have managed to be a great example of what not to do when bringing people up to new levels. In 2018, California made a law stating that there must be one woman on the Board of Directors if your company is based there. The Companies had to have at least one person who self-identifies as a woman to a seat on the corporate board. A California State Jude has ruled that this law breaks the California state constitution’s equal protection clause.
Superior Court Judge Maureen Duffy-Lewis issued the ruling after a conservative-led group, Judicial Watch, challenged the law. The law was signed in by former California Gov Jerry Brown, who did it in the wake of the #metoo movement. The law was set to grow after a few years, with 5 members requiring 2 Women and eventually 6 requiring 3. Companies that failed to report board diversity would be subject to a $100,000 fine under law S.B. 826.
Judicial Watch argued that it was illegal to use taxpayer funds to enforce diversity, violating the state’s equal protection clause. Judge Maureen agreed that this ruling unfairly treated other board members. The State failed to prove that the law was not specifically tailored to or that it would fix “specific, purposeful, intentional and unlawful discrimination.” This ruling aligns with the one requiring corporations to have racial minorities or members of the LGBTQ+ community serve on their boards by 2021, signed into law by Gov. Gavin Newsome
Investor’s Edge with Gary Kaultbaum can be heard on weekdays on MoneyTalk 1010. Gary Kaltbaum is a registered investment advisor with more than 30 years of experience in the markets. He is the owner and President of Kaltbaum Capital Management, a financial investment advisory firm headquartered in Orlando, Florida. He is a Fox News Channel Business Contributor regularly appearing on Fox News Channel and the Fox Business Network. In addition, Gary is the author of the book “The Investors Edge” and the host of a nationally syndicated radio show with the same title, “Investors Edge,” broadcast on numerous stations across the U.S. The show is also available on-demand and airs live 6-7 pm EST Monday-Friday. You can hear past shows online at garykaltbaum.com.
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