---
title: "US Court Orders Nasdaq to Abandon Board Diversity Programme"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2024-12-15T05:34:57+00:00"
modified: "2024-12-14T20:39:14+00:00"
date: 2024-12-15
canonical: "https://stockmark.it/us-court-orders-nasdaq-to-abandon-board-diversity-programme/"
category: "Business"
categories: ["Business", "Financial"]
image: "https://i0.wp.com/stockmark.it/wp-content/uploads/stencil.default-2024-12-14T203835.413.jpg?fit=1200%2C800&quality=89&ssl=1"
format: "news"
language: "en-GB"
---

# US Court Orders Nasdaq to Abandon Board Diversity Programme

**Published:** December 15, 2024
**Author:** Stockmark.IT Website
**Categories:** Business, Financial
**Featured image:** ![Nasdaq logo on a podium with executives giving thumbs up. from Stockmark.it](https://i0.wp.com/stockmark.it/wp-content/uploads/stencil.default-2024-12-14T203835.413.jpg?fit=1200%2C800&quality=89&ssl=1)

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A US appeals court has delivered a significant blow to corporate diversity initiatives by striking down Nasdaq’s rules aimed at boosting the representation of women and ethnic minorities on company boards.

The Securities and Exchange Commission’s 2021 diversity requirements, which mandated Nasdaq-listed companies to either maintain diverse boards or provide explanations for their absence, have been overturned in a close 9-8 vote by the US Court of Appeals for the Fifth Circuit.

Conservative groups have long opposed these measures, labelling them as “woke” initiatives that potentially harm investor interests, citing a lack of definitive evidence linking board diversity to improved corporate performance.

Judge Andrew Oldham, a Trump-era appointee, led the majority opinion, stating the SEC had exceeded its authority by approving these requirements. The ruling emphasised that the financial regulator had ventured “far outside its ordinary domain,” creating significant implications for corporate governance policies.

The challenge to these diversity rules came from the National Center for Public Policy Research and the Alliance for Fair Board Recruitment, led by Edward Blum, who previously spearheaded a successful Supreme Court challenge against race-conscious college admissions policies.

The New Orleans-based court determined that the rules contradicted federal securities law, with Judge Oldham highlighting that disclosure rules must specifically address issues outlined in the Securities Exchange Act of 1934, such as manipulation, speculation, and fraud.

While the SEC reviews the ruling, Nasdaq has indicated it will not appeal the decision, despite maintaining its belief in the benefits of board diversity for companies and investors. This development marks a significant shift in the ongoing debate about corporate diversity requirements in the United States.

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**Original URL:** https://stockmark.it/us-court-orders-nasdaq-to-abandon-board-diversity-programme/
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