The Fifth Circuit of Appeals recently invalidated Nasdaq’s board diversity requirements, which mandated that companies listed on their exchange should meet specific racial and gender representation goals among directors.
A recent article by the Financial Times highlights that these guidelines, requiring at least two directors to be from diverse backgrounds, faced legal challenges from various conservative groups.
According to the Financial Times, the court concluded that the Securities and Exchange Commission (SEC) overstepped its bounds, as establishing such rules exceeded its jurisdiction.