California has recently become the first state to require women to be on the boards of directors in California based publicity trade companies.
Boards of directors are responsible for the overall reputation and activity of a corporation. Members are responsible for overseeing the big picture of the company and changing directions when necessary.
A board of directors are also responsible for finances, working on behalf of all shareholders to make sure that they do not lose money. All allegations that take legal action toward the company are handled by boards of directors.
By the end of next year companies will be required to have at least one woman on their board. The number of women that companies are required to have on their boards is dependent on the size of the board. On a board of five there must be at least two women, on a board of six there must be at least three women.
If a company fails to comply with these requirements by the end of July 202, it will be fined $100,000 for a first offence, and $300,000 for a second offence.
This will mandate that 40 percent of boards of directors are made up of women, still making the boards majority men. Currently boards of directors are composed of 20 percent women.
Business is a field that is overly saturated with men. California Senate Bill 826 signed by Governor Jerry Brown is souped to combat that.
Over 30 large California based companies oppose this bill. The argument from businesses is that it will displace a large amount of board members solely based off of gender.
Some female teens believe that the business world is unwelcoming to them. “I never really felt like business was something that I could do for a living and be successful,” said freshman Madison Miller.
“Ever since I was older I’ve wanted to pursue a career in business,” said freshmen Taylor White “because of this bill I feel more comfortable going into a career in business, and having the ability to be successful.”