A federal appeals court on Wednesday struck down the Nasdaq's diversity disclosure rules for companies listed on the stock exchange, which were designed to boost the representation of women and minority directors on boards.
The big picture: The conservative-majority New Orleans-based 5th U.S. Circuit Court of Appeals ruled the Securities and Exchange Commission did not have the power to approve the rule that required companies to ensure women and minority directors were on their boards or provide an explanation of why this was not the case.
The big picture: The conservative-majority New Orleans-based 5th U.S. Circuit Court of Appeals ruled the Securities and Exchange Commission did not have the power to approve the rule that required companies to ensure women and minority directors were on their boards or provide an explanation of why this was not the case.
- It was implemented after George Floyd's killing pushed companies to address racial inequality and move toward diversity, equity and inclusion.
- An SEC spokesperson said in an emailed statement Wednesday evening that the agency was "reviewing the decision and will determine next steps as appropriate."
