An appeals court in Louisiana has made a significant ruling against Nasdaq's proposal to mandate diversity on the boards of companies listed on the exchange. This decision comes after more than three years since the Securities and Exchange Commission (SEC) approved Nasdaq's initiative to increase the representation of women, racial minorities, and LGBTQ individuals on U.S. corporate boards.
The proposed policy, which aimed to be the first of its kind for a U.S. securities exchange, would have necessitated most of the nearly 3,000 companies listed on Nasdaq to have at least one woman and one person from a racial minority or LGBTQ community on their board of directors. Additionally, companies would have been required to disclose demographic statistics about their board composition.
