BILL NUMBER: SB 1424	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Wieckowski

                        FEBRUARY 19, 2016

   An act to amend Section 700 of the Corporations Code, relating to
corporations.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1424, as introduced, Wieckowski. Shareholder voting.
   Existing law, the General Corporation Law, authorizes a
corporation to issue one or more classes or series of shares with
full, limited, or no voting rights and with such other rights,
preferences, privileges and restrictions as are stated or authorized
in articles of incorporation of that corporation. Existing law
generally provides that each outstanding share is entitled to one
vote on each matter submitted to a vote of shareholders.
   This bill would make nonsubstantive changes to this provision.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 700 of the Corporations Code is amended to
read:
   700.  (a) Except as provided in Section 708 and except as may be
otherwise provided in the articles, each outstanding share,
regardless of class, shall be entitled to one vote on each matter
submitted to a vote of shareholders.
   (b) Any holder of shares entitled to vote on any matter may vote
part of the shares in favor of the proposal and refrain from voting
the remaining shares or vote them against the proposal, other than
elections to office, but, if the shareholder fails to specify the
number of shares  such   the  shareholder
is voting affirmatively, it will be conclusively presumed that the
shareholder's approving vote is with respect to all shares 
such   the  shareholder is entitled to vote.