New York Enacts "Women on Corporate Boards Study" Law | Practical Law

New York Enacts "Women on Corporate Boards Study" Law | Practical Law

On December 30, 2019, New York Governor Andrew M. Cuomo signed legislation referred to as the "Women on Corporate Boards Study" law, which becomes effective June 27, 2020, and requires the New York State Department of State and the Department of Taxation and Finance to conduct a study of the proportion of female members on the boards of domestic and foreign corporations licensed to do business in New York.

New York Enacts "Women on Corporate Boards Study" Law

Practical Law Legal Update w-023-7932 (Approx. 3 pages)

New York Enacts "Women on Corporate Boards Study" Law

by Practical Law Corporate & Securities
Published on 10 Jan 2020 • USA (National/Federal)
On December 30, 2019, New York Governor Andrew M. Cuomo signed legislation referred to as the "Women on Corporate Boards Study" law, which becomes effective June 27, 2020, and requires the New York State Department of State and the Department of Taxation and Finance to conduct a study of the proportion of female members on the boards of domestic and foreign corporations licensed to do business in New York.
On December 30, 2019, New York Governor Andrew M. Cuomo signed the "Women on Corporate Boards Study" legislation, which requires the New York State Department of State and Department of Taxation and Finance to conduct a study of the proportion of female members on the boards of domestic and foreign corporations licensed to do business in New York (see SB S4278 (NY 2019)). The law, which takes effect June 27, 2020, requires corporations to provide the following information in their biennial filings under Section 408 of the NY Business Corporation Law:
  • The number of directors on their boards.
  • How many of those directors are women.
The New York State Department of State will publish a report of its findings on or before February 1, 2022, and every four years thereafter. The reported findings will include:
  • The number of female directors and the total number of directors that constitute the board of each corporation.
  • An analysis of the change in the number of female directors from the previous years.
  • The aggregate percentage of female directors on all boards.
New York is one of an increasing number of states that are attempting to promote board diversity through legislation (for example, see Legal Update, California Passes Law Requiring Public Companies to Include Women on Boards of Directors).
For more information on the growing emphasis on board diversity, see Standard Document, Memorandum to Board: Gender Diversity in the Boardroom and Article, Board Diversity: Steering the Ship Under the Watchful Eyes of Shareholders, Lawmakers, and Regulators.