Historically, California's legislature has stood steadfastly behind policies designed to protect shareholders and creditors, at the expense of corporate management, in the development of the state's corporation laws. At the same time, other jurisdictions, primarily Delaware, have adopted less restrictive corporation laws to make their states attractive corporate domiciles. After decades of watching corporations flock to other states to incorporate, the California legislature decided to act. Recent legislation suggests that California has made a concerted effort to provide a hospitable environment for corporations.
Susan A. Rose,
Optional Cumulative Voting & Staggered Terms of Directors: Is the California Climate Warming to Corporations,
San Diego L. Rev.
Available at: https://digital.sandiego.edu/sdlr/vol27/iss2/8