A US appeals court has struck down Nasdaq’s diversity rules, which had set comply-or-explain diversity quotas for the board members of companies listed on the exchange, as reported by the Financial Times.
Introduced in 2020, the rules required large listed companies to have two diverse directors: one identifying as female and another as an underrepresented racial or ethnic minority, or from a diverse sexual orientation or gender identity group. The Fifth Circuit Court of Appeals ruled in a 9-8 decision that the Securities and Exchange Commission (SEC) lacked authority under existing laws to approve these rules.
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