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CALIFORNIA CORPORATE & SECURITIES LAW

Does Anyone Remember Y2K – California Does!

In the closing years of the last millennium, many were concerned about the “Year 2000 Problem” (aka Y2K).  According to this Securities and Exchange Commission interpretive release: The “Year 2000 problem” arose because many existing computer programs use only the last two digits to refer to a year. Therefore, these computer programs do not properly…

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The Investment Company Act And Roy M. Cohn

Last week, UFCW Local 1500 Pension Fund filed a class action and derivative lawsuit against Yahoo! Inc., its board of directors and some of its current and former officers.  (N.D. Cal. Case No. 3:16-cv-00478-RS).  According to the complaint, Yahoo describes itself as a global Internet new media company that offers a branded network of media, commerce,…

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You Might Be Surprised By These Words In Magna Carta

I’m continuing my desultory study of the Magna Carta, which marked its 800th birthday last June.  Although the original charter was written in Latin, my occasional efforts at translation has made me keenly aware that it uses many words that although still common no longer have the same meanings.  Below are three words whose meanings…

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Did Utah’s Securities Commission Really Call Out California’s Commissioner?

I recently ran across an article concerning a row between Utah’s Securities Commission and California’s Commissioner of Corporations, E.C. Bellows.  Engineering & Mining Journal, Bingham Galena on Trail of California Corporations Commission, 313 (Aug. 20, 1921).  The fight’s genesis was a June 18, 1921 permit issued by the Utah Securities Commission authorizing the sale of 467,100…

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How A Train Wreck Changed The Constitution

In the early morning of October 3, 1970 on rural road just outside San Jose, 61-year old Engineer Anthony Gassell was at the controls of his Southern Pacific locomotive as it headed northwest.  At the same time, 24-year old Kathryn Colville was driving with her 2 1/2 year-old son, Paul, to feed her horse.  As…

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Why The Capitol Is In The Capital

Article III, Section 2 of the California Constitution provides that “Sacramento is the capital of California”.  The building in which the legislators meet, however, is denominated the “capitol” building.  Thus, the state capitol can be found in the state capital.  But why the variant spelling? Both words are derived from the Latin word for head…

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A Hollow Nickel, Hollywood And Texas Gulf Sulphur

If you’ve taken a course in securities law, you’ve undoubtedly heard of, and I hope have read, SEC v. Texas Gulf Sulphur Co., 401 F.2d 833 (2d Cir.), cert. denied, 394 U.S. 976 (1968).  That case is famous for the Second Circuit Court of Appeals’ adoption of the “disclose or abstain” rule for corporate insiders.  The…

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Proposed Initiative Seeks Vote On California Nationhood

Earlier this month, California’s Secretary of State announced that the proponent of a California nationhood proposal may circulate the initiative for signature.  The proponent must secure the signatures of 365,880 registered voters (five percent of the total votes cast for governor in the November 2014 general election) in order to qualify the initiative for the November 2016…

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Could This Really Be The Origin Of Due Process?

On Monday, I wrote about the upcoming 800th anniversary of the Magna Carta.  The California Assembly recently took note of the upcoming octocentennial and is considering adoption of a commemorative concurrent resolution.  The resolution, ACR 76, provides a fairly accurate description of the historical events and key clauses of the Magna Carta.  However, I do…

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Why The Wall Street Journal Is Wrong About The Magna Carta

On Saturday, The Wall Street Journal published an article by Daniel Harmann celebrating the 800th anniversary of the Magna Carta. In recognition of this event, this blog has sporadically published translations of portions of the famous charter.  See It’s Magna Carta Friday! and Magna Carta Friday – King John Guarantees The Freedom Of The English Church.  The Wall Street Journal article…

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