Some publicly traded corporations have the suitable to stay silent if they’re publicly owned – company / business regulation

Allen Matkins Leak Gamble Mallory & Natsis LLP

United States:

Some publicly traded companies have the right to remain silent if they are held in public

June 09, 2021

Allen Matkins Leak Gamble Mallory & Natsis LLP

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Readers of this section will know that California’s diversity statutes apply to “publicly traded companies” and that California’s company disclosure law applies to “publicly traded companies.” While these two terms are insanely similar, they have different definitions. See cal. No. Corp. Code §§ 301.3 (f) (2), 301.4 (e) (2), 1502.1 (b) (1) & 2117.1 (b) (1). Publicly owned companies incorporated or authorized to conduct domestic business under the California General Corporation Law must file an annual disclosure statement (Form SI-PT) with the California Department of State. The instructions make it clear that a publicly traded corporation that is not a publicly traded corporation is not required to answer question number 5 on the form (see below). This instruction is as appropriate, but is not intended for those publicly traded companies that are not bound by the California Board Diversity Bylaws because their primary offices are not here. Not long ago, I asked the Foreign Secretary’s office if these companies are required to answer the board’s diversity questions on the form, and I was advised that answering Question # 5 is also voluntary for these companies is.

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