AB 285 (Tran): Electronic Transmissions

By Nancy Wojtas

On August 5, 2009, Governor Schwarzenegger signed AB 285 (Tran) which amends Section 20 of the California Corporations Code: electronic transmissions. Section 20 currently provides the requirements for an authorized electronic transmission by a corporation, including, without limitation, that the recipient has provided an unrevoked consent to the means of transmission and that an electronic transmission to an individual shareholder or member satisfies the federal Electronic Signatures in Global and National Commerce Act, or ESIGN. AB 285 eliminates the requirement to satisfy ESIGN and requires that the consent to electronic transmissions to an individual shareholder or member of the corporation who is a natural person be preceded by or include a written statement to the recipient containing specified information. This law is not effective until January 1, 2010.

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