Nasdaq’s Board Diversity Rules Overturned By Appeals Court

An appeals court ruled against Nasdaq’s proposal to mandate company disclosures about the diversity of their Boards, specifically regarding race, gender, and sexual orientation.

Nasdaq’s proposal aimed to ensure companies have at least one female Director and one Director from under-represented racial or LGBTQ+ groups, with those not meeting the requirement needing to explain why. However, the court ruled that the SEC did not have the authority to enforce such mandates. The decision came after a lawsuit from groups opposing diversity requirements, arguing that the SEC was overstepping its boundaries. This ruling limits the SEC’s role in shaping diversity policies for U.S. companies.