NYSE approves new rules to prevent corporate fraud

The New York Stock Exchange’s (NYSE) board of directors has approved new rules designed to curb corporate fraud, including provisions t...

The New York Stock Exchange’s (NYSE) board of directors has approved new rules designed to curb corporate fraud, including provisions to make company boards more independent and give shareholders a greater voice in the granting of stock options.

The rules, which require approval by the SEC, were originally proposed in June following a string of corporate accounting scandals. The SEC had asked US stock markets to come up with ways to reform the system, and restore shareholders’ confidence, last week, the Nasdaq stock market approved similar measures.

The NYSE’s new rules, approved on Thursday, apply to companies that list their stock with the exchange and some could go into effect by the end of the year, among the key provisions:

Story continues below this ad

• Corporate boards must be composed of a majority of independent directors, except for those boards where the majority of voting power is held by an individual, group or another company rather than the public.

• Nominating, companesation and audit committees must be composed solely of independent directors.

• Shareholder approval is required for stock options plans, with the exception of employment-inducement options, plans at companies acquired through merger, employees stock ownership programmes and certain tax-qualified plans.

What driver who took finance ministry officer to hospital said about ‘madam driving BMW’

Cities4 hr ago

A BMW rammed into a motorcycle, killing Navjot Singh, a Finance Ministry official, and injuring his wife. Mohammad Gulfam, a passerby, rushed them to a private hospital after the car driver asked him to. The driver, Gaganpreet Makkar, and her family were also admitted to the same hospital. Police have booked Gaganpreet for culpable homicide and attempting to destroy evidence.

View all shorts

Live Blog