Securities Advisory: California Corporate Disclosure Act
2/25/2003
Effective January 1, 2003, the newly adopted California Corporate Disclosure Act will require new disclosures to be made with the California Secretary of State. The Act amends the information required by Sections 1502 and 2117 of the California Corporations Code to be filed by domestic and foreign corporations, respectively, and the timing of such filings with the California Secretary of State.
Substantive differences between the Act and federal securities law are highlighted in this Advisory. The areas in which the Act differs from federal securities law include information filed in relation to:
- Auditors
Executive Compensation
Loans to Directors
Bankruptcy
Fraud Convictions
Violations of Securities Laws
Certification by Domestic Corporations
