California Corporate Accountability Act (2008)
|Not on Ballot|
| This measure did not or |
will not appear on a ballot
The initiative would have created a new legal basis to address illegal actions by corporations or key individuals within corporations. Specifically, it would have:
- Expanded existing corporate liability by allowing designated challenges to be brought by individuals or organizations whose investments, pensions, retirement funds or savings suffer a loss.
- Made corporations liable for any financial benefit acquired from the sale of securities during the period of illegal activity.
- Required responsible executives to pay penalties equaling all compensation received during the period of illegal activity.
- Mandated penalties be paid into fund providing repayment to victims of corporate fraud.
James C. Harrison
Margaret R. Prinzing
Remcho, Johansen & Purcell, LLP
Fiscal impact estimate
Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government:
Probably no state administrative cost. Potential unknown additional penalty revenue for corporate fraud restitution payments.