Legal Question in Business Law in California

subject

Would you be so kind as to provide me some basic legal advice related to creating third-party rights and privileges for new board members under California State corporate law. Specifically:

1.When designating a new board director in the state of CA, is a corporate entity required to notify or register the individual with any state or local government office in order to establish full third-party rights and privileges for that member?

2. If such registration is required, where could I reference the precise legal procedure to establish the third party right for that new member?

I sincerely appreciate you guidance.

Respectfully yours,


Asked on 6/26/02, 11:06 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: subject

The term 'third party rights and privileges' with respect to a corporate director is foreign to me; I have no idea what kind of rights and privileges you mean. Corporate directors are normally considered to have duties and obligations along with, perhaps, the right to vote on matters of corporate governance at board meetings.

California requires that corporations file an annual statement with the Secretary of State showing the names of its officers, directors, and registered agent for the service of process.

If the corporation is subject to the reporting requirements of the Securities Exchange Act of 1934, it probably has a range of duties to report and file information (10-K and 10-Q etc. reports) including equivalent state filings. Describing these requirements would go way beyond what can be done on a bulletin board. You would need a securities lawyer's advice on that.

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Answered on 6/27/02, 2:17 pm


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