Business Client Alert: Nasdaq Outlines Potential Changes to Corporate Governance Standards for Listed Companies
4/26/2002
This alert describes initial recommendations that were formulated by the Nasdaq Listing and Hearing Review Council and that relate to improving corporate governance practices in the United States for Nasdaq-listed companies. The alert identifies the eight key areas for action that Nasdaq highlighted in these recommendations: (a) corporate codes of conduct; (b) related party transactions; (c) stockholder approval for stock option plans; (d) enhancements to news dissemination methods; (e) audit committee qualifications and competence; (f) director independence definition; (g) audit committee authority with respect to independent auditors; and (h) corporate governance and foreign issuers.
