California Corporate Accountability Act (2008)
From Ballotpedia
| Not on Ballot |
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| This measure did not appear on a ballot. |
The Corporate Accountability Act (07-0046) is an initiated state statute whose supporters are hoping that it will qualify for the November 2008 general election ballot in California. In order for that to happen, the supporters will have to turn in 433,971 valid signatures by March 3, 2008.
In mid-March 2008, the California Secretary of State announced that the measure had failed to qualify for the November 2008 ballot.
What this initiative would do, if it becomes law, is to create a new legal basis to address illegal actions by corporations or key individuals within corporations. Specifically, it:
- Expands existing corporate liability by allowing designated challenges to be brought by individuals or organizations whose investments, pensions, retirement funds or savings suffer a loss.
- Makes corporations liable for any financial benefit acquired from the sale of securities during the period of illegal activity.
- Requires responsible executives to pay penalties equaling all compensation received during the period of illegal activity.
- Mandates penalties be paid into fund providing repayment to victims of corporate fraud.
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Proponents
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.
