Jody Godoy

(Reuters.) – Wednesday’s opening statements in a lawsuit against California’s law requiring public companies to have women on boards were given. The case is challenging California’s ability to deal with corporate disparities.

California’s three taxpayers are going to try to prove that the law is sex discrimination against the constitution.

Assisting in the defense of the law, Ashante Norton stated in her opening statement, that the state has a compelling interest gender diversity on boards. She also said that the law was designed to correct a long-standing problem with women serving on boards.

“It did not set a quota,” she said. “No man has to lose his seat.”

The law, which was passed in 2018, requires that publicly held companies located in the state have at least three female directors.

California’s Secretary-of-State is attempting to prevent the plaintiffs from enforcing this law. It provides fines of between $100,000 and $300,000 for each violation. So far, no fines were imposed.

Judicial Watch is representing plaintiffs in the case.

A separate challenge is being made by the conservative group to California’s similar law last year that requires boards to include members of “underrepresented” communities. This bill would include Black, Latino, Asian, and Native American peoples, as well those who are transgender, gay, lesbian or bisexual.

These laws come as a result of increasing pressure from companies to diversify their boards.

Nasdaq Inc, a stock exchange operator, recently established a rule that requires its listed companies have different boards.