Author: Mas Harntha

SEC Approves Nasdaq’s Comply-or-Explain Board Diversity Requirement

Under newly approved amendments, many companies listed on the Nasdaq Stock Exchange will soon be required to have, or explain why they do not have, at least two board of directors members who are diverse (i.e., female, an underrepresented minority or LGBTQ+), including (i) at least one female director; and (ii) at least one underrepresented minority or LGBTQ+ director. Nasdaq-listed companies will also have to provide annual numerical disclosure on the diversity of their board of directors.