Nasdaq Board Diversity Rules Under Debate

Nasdaq's diversity rules, introduced in 2020, required listed companies to include diverse board members based on race, gender, and sexuality. Critics argue these rules prioritize social justice over competence and fairness, particularly as they exempt Chinese companies. 

The rules faced legal challenges, with a federal court ruling them illegal under securities laws and civil rights acts. Despite the ruling, the data collected under these mandates may remain accessible through the Securities and Exchange Commission (SEC's EDGAR system), enabling activist groups to continue pressuring companies. 

This situation highlights ongoing tensions between corporate governance, regulatory frameworks, and social justice initiatives.