California’s gender diversity board mandate struck down in court with the law requiring companies to have one or more women on boards declared unconstitutional.
A California judge has struck down a law that requires companies headquartered in the state to have a minimum number of women on their boards, throwing into doubt a corporate governance initiative that has gained momentum.
California’s 2018 gender diversity law required companies with six or more board directors to have at least three women. Smaller company boards would need to have at least one woman.
But Judge Maureen Duffy-Lewis in the Superior Court of California for Los Angeles County ruled the law unconstitutional. The state failed to show a connection between women on corporate boards and improved financial performance, she said in a decision dated May 13, adding that academic research on the topic was inconclusive.
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