Nasdaq: Companies must explain why they don't have boards


New York, 6 August 2016 - The U.S. Securities and Exchange Commission approved a proposal from the stock exchange Nasdaq Inc that requires his listed companies to have multiple boards, or explain why they don't.

The proposal requires companies to have two diverse directors, including one whoidentifies as female and another as an underrepresented minority or LGBTQ, or explain why they do not. Companies also must publicly disclose the diversity of their boards.

Women and minorities have been underrepresented in the top ranks of companies, which lead to a recent reckoning of Race Diversity in Corporate America.

California and Illinois also have laws on diversity of board members for companies located in their states.