A federal appeals court on Wednesday scrapped Nasdaq rules intended to increase representation of women and minorities on corporate boards, withdrawing its previous support for an SEC order that had allowed the regulations to move forward.
The Securities and Exchange Commission lacked the power in 2021 to approve the requirements for Nasdaq-listed companies to have diverse boards or explain why they don’t, the US Court of Appeals for the Fifth Circuit ruled in a 9-8 vote.
All nine of the judges in the majority were appointed by Republican presidents. The eight judges voting against the decision included three Democratic-appointed judges ...
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