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Three California taxpayers will seek to show the law amounts to
sex discrimination in violation of the state's constitution.
Defending the law, Deputy Attorney General Ashante Norton said
in her opening statement that the state had a compelling
interest in gender diversity on boards, and that the law was
tailored to address a historic lack of women on boards.
“It did not set a quota,” she said. “No man has to lose his
seat.”
Passed in 2018, the law requires publicly-held companies based
in the state to have up to three women directors by the end of
this year.
The plaintiffs aim to block California's Secretary of State from
enforcing the law, which provides for fines from $100,000 to
$300,000 per violation. No fines have so far been levied.
Lawyers from Judicial Watch are representing the plaintiffs in
the lawsuit.
The conservative group is also representing taxpayers in a
separate challenge to a similar law California passed last year
requiring boards to include members from "underrepresented"
groups, which the bill defines to include Black, Latino, Asian
and Native American individuals, as well as those who are gay,
lesbian, bisexual or transgender.
The laws are part of mounting pressure on companies to diversify
their boards.
Stock exchange operator Nasdaq Inc recently instituted a rule
requiring its listed companies to have diverse boards or explain
why not.
(Reporting by Jody Godoy in Los Angeles; Editing by Noeleen
Walder and David Gregorio)
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