SACRAMENTO- Assemblyman Curt Hagman’s (R-Chino Hills) legislation, AB 434, which updates California’s corporation code, passed on the Assembly Floor with unanimous support. AB 434 would update a Corporation’s Code section to accurately reflect changes made by AB 571 (Hagman), which amended two sections within the code and repealed another.
“This bill is necessary to assure that documents filed by businesses with the Secretary of State are not rejected because they include language with references to code sections that are now nonexistent or incorrect,” stated Assemblyman Hagman. “AB 434 will correct the improper references in California’s Corporations Code to alleviate this additional burden on our state’s businesses.”
In 2011, Assemblyman Hagman’s AB 571 was signed into law by Governor Jerry Brown. This measure updated California’s Corporations Code, which was developed in the 1970s. The archaic accounting tools created barriers for a variety of business models which increased the difficulty of doing business in California. AB 571 corrected this problem by allowing businesses to use a more streamlined and modern approach to deal with company dividends and distributions of shares.