The NASDAQ Stock Market (Nasdaq:NDAQ) and the Exchange's Listing and Hearing Review Council have solicited comments from its listed companies regarding the potential adoption of corporate governance best practices. The Listing Council welcomes comments from listed companies, as well as investors and other interested parties, regarding the type of best practices that could potentially be adopted by listed companies. The Listing Council has requested that comments be submitted by October 30.
"A best practices approach has the potential to focus attention on important governance issues in a flexible, transparent manner, and could strengthen the way in which companies address these issues, providing benefits to public companies and shareholders alike," said Michael Emen, Senior Vice President of NASDAQ's Listing Qualifications Department. "NASDAQ is uniquely situated in that we have a standing body that focuses on public policy issues related to listed companies. We are confident that the Listing Council's review of these issues and consideration of the public comments will add to the ongoing public dialogue about governance questions."
Best practices are a corporate governance model widely followed around the world, often referred to as "comply or disclose" or "comply and explain." In this model, a company publicly discloses that it either satisfies the practice at issue, or, if it does not, explains why not.
The issues the Listing Council is seeking comment on include, but are not limited to, best practices surrounding executive sessions of independent directors, continuing education and training for directors, the director election process, and shareholder interaction with directors. Following the collection of comments, the Listing Council will publish its recommendations. To view the full text of the comment solicitation, visit http://www.nasdaq.com/services/insidenasdaq.stm.
Listing Council is an independent advisory committee appointed by the NASDAQ Board of Directors. The Listing Council was established nearly 20 years ago to provide advice to the Board on public policy issues related to listed companies, consistent with the Board's core responsibility of seeking independent, outside advice. The Listing Council provides the NASDAQ Board with a breadth and wealth of knowledge and experience on corporate governance and related issues. Members of the Listing Council come from constituencies including institutional investor advocates, company representatives, lawyers, accountants, securities industry professionals and academics. To view a list of Listing Council members, visit http://media.globenewswire.com/cache/6948/file/7414.pdf