With a 51% shareholding, SAIC will have the right to approve budgets and senior appointments.
For the last two years it has overspent its approved budgets by 2percentt or $1 million.
The nine schools represented in the lawsuit are on probation, which means their Local School Council's key powers — approving budgets and hiring new administrators — are revoked.
Other than approving budgets and lending support, the league has taken a hands-off approach to the day-to-day running of the club.
The board, which meets four times a year, has "governance authority" over the university, reviewing and approving budgets, faculty appointments and new curriculums, according to a spokeswoman, Caroline Oyama.
The cuts have come as states across the country are struggling to approve budgets, and California's governor, Arnold Schwarzenegger, declared a fiscal state of emergency on Wednesday.
But Ms. Johnson and other board members said they did not evaluate his performance, approve budgets or even see financial statements.
He wanted to spend less time giving speeches, hiring editors, and approving budgets and more time driving fast cars, shooting big animals, and hanging ten.
If the Health and Social Care is approved, budgets and commissioning decisions would be handed to GPs.
