Bill > AB1984

This bill, by adding a new Title 1.5 to the Corporations Code, aims to redefine the powers of corporations operating in California. It revokes all previously granted corporate powers and states that corporations will only possess those powers explicitly granted within the Corporations Code. While granting corporations perpetual existence and the ability to conduct business like an individual, this bill specifically prohibits them from engaging in "ballot issue activity" (influencing ballot questions) or "election activity" (influencing nominations, elections, or political parties). Any action taken by a corporation beyond its granted powers will be considered void, and exercising ungranted powers can lead to the forfeiture of corporate privileges like limited liability. The bill also clarifies that out-of-state corporations engaging in such activities in California will be considered to be transacting business in the state. Furthermore, the bill emphasizes the Legislature's preference that corporations should have no powers at all rather than be vested with powers for election or ballot issue activity, and its provisions are designed to be severable.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1984