|
|
Article: Using Categorical Standards to Determine Director Independence Under New NYSE and NASDAQ Rules.(New York Stock Exchange Inc. and Nasdaq Stock Market Inc.)(Securities and Exchange Commission's rules)
- Article from:
- Mondaq Business Briefing
- Article date:
- March 2, 2004
- Author:
CopyrightCOPYRIGHT 2004 Mondaq Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
On November 4, 2003, the Securities and Exchange Commission approved rule changes filed by the New York Stock Exchange and NASDAQ to amend director independence requirements for NYSE and NASDAQ companies (www.sec.gov/rules/sro/34-48745.htm). In both cases, the new rules are, with certain exceptions, effective on the date of a companyEs first annual meeting of shareholders after January 15, 2004, but no later than October 31, 2004. Among other things, both the NYSE and NASDAQ rules require companies to have a majority of "independent" directors. However, the rules differ in their approach to defining "independence" for these purposes.
The NYSE Approach to Defining ...