The Illinois House of Representatives voted to require companies based in Illinois to include at least one female and one African American on the board of directors.
If the bill becomes law Illinois companies will be fined $300,000 if they don’t comply.
I’m sure they hope this will correct some kind of historic injustice. But at the risk of sounding completely unwoke, this is completely insane.
The board of directors of any company is selected by the shareholders… not by the government, not by a quota system.
Any individual who holds shares in a company has the right to vote for whoever they choose, just like in any other election.
Imagine a Presidential election where you can only vote for a particular type of person. Or imagine if a certain percentage of Congress were appointed based on their skin color or gender, instead of elected by their constituents.
It’s supposed to be a sacred right in the “Land of the Free” to vote for whoever you want.
Now the bill is in the Illinois Senate, where politicians have added Latinos to the list of groups that must be represented on all board of directors.
But why stop there? Why do Native Americans get slighted, or disabled people, or gays?
The bill actually says the boards need a woman or anyone who identifies as a woman. But they don’t give a proper definition of black. Is half, a quarter, or 1/64th black okay?
This brings back a Nazi-like obsession with somebody’s bloodline.
With a pure Aryan heritage, Nazis got privileged status. Illinois is comfortable basing privilege on African bloodlines.
The Senate version of the bill allows a company to check off multiple racial and gender categories with one person. So the purest of all board members would be a half-black half-Latina woman.
And let’s not forget that companies have constitutions that provide for a certain number of directors who can only be removed by the shareholders.
So the bill says a company can just create more seats…
The government simply dictates that a company can break a contract with the shareholders.
But legally, a company can only create new board seats and appoint new members with shareholder approval.
The government is putting these companies in an impossible position to either violate Illinois law or contractual obligations– and probably get sued by the shareholders.
Even if we assume the best intentions of these lawmakers, what they are truly doing is destroying private property rights. You either own something, or you don’t.