When Asking For Spousal Consent Is Unlawful

From time to time, a question will arise about the necessity of obtaining spousal consent in connection with the purchase or sale of a security.  Interestingly, California declares it unlawful for any agent or broker-dealer to require prior spousal consent or authorization as a condition to the purchase or sale of securities in the name of a married person.  Corporations Code Section 25246.

The General Corporation Law also provides that domestic or foreign corporations (and their transfer agents and registrars) are not liable to any married person or to any transferee of that person for transferring shares or other securities on their books at the instance of the person in whose name they are registered, without the signature of that person’s spouse and regardless of whether the registration indicates that the shares or other securities are community property, in the same manner as if the person were unmarried.  Corporations Code Section 420(c).

Delaware/California Law Update

On May 22, I’ll be participating in the Los Angeles County Bar Association’s annual Delaware/California Law Update Symposium.  California Corporations Commissioner Jan Owen will be the luncheon keynote speaker and prominent Delaware lawyer Mark Gentile will be providing the Delaware law update.

This annual symposium is a longstanding tradition of the Los Angeles County Bar Association.  It is also known as the Glendon Tremaine Symposium in honor of the former president of the association who passed away in 1986 at the age of 82.

 

Published In: Administrative Agency Updates, General Business Updates, Family Law Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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