Nasdaq Inc.’s - a United States financial services company that operates stock exchanges - proposed rules regarding diversity on boards of directors were approved by the Securities and Exchange Commission (“SEC”) on August 6, 2021. (SEC, SEC Release 34-92590). In order for a self-regulatory agency (an organization, such as Nasdaq, that provides standards for and regulates its own industry) to change a rule, it must file the proposed change with the SEC and seek approval. (17 CFR § 240.19b-4; Adam Hayes, Investopedia). Nasdaq filed two proposed rule changes with the SEC on December 1, 2020, which proposed changes were published in the Federal Register and underwent the standard review and comment process. (SEC, SEC Release 34-92590; SEC, Federal Register). . .
Read MoreAn emerging trend among corporate investors is the use of shareholder activism to effectuate some change to a corporation, with a focus on a company’s environmental and social justice performance. (Mary Ann Cloyd, Harvard Law School Forum on Corporate Governance). Activism methods include supporting hedge funds in their effort to win board seats, urging fellow shareholders to withhold their vote on a nominated board candidate, and supporting a formal shareholder proposal. Id. In a major win for investors seeking action by large oil and gas companies to substantially reduce their carbon footprint around the world, activist investment firm Engine No. 1 (“Engine”) succeeded in gaining three seats on the board of directors of Exxon Mobil (“Exxon”) through a shareholder vote in late May 2021. (Pippa Stevens, CNBC). By securing three seats on Exxon’s board, Engine is now able to induce significant carbon-cutting action by the company, and other multinational energy and gas firms may soon be pressured by similar activist firms to follow suit.
Read MoreAs the climate change cloud darkened over the United States, American investors called for greater climate risk transparency from corporations. In December 2020, the Securities and Exchange Commission’s (“SEC”) subcommittee of Environment, Social, and Governance (“ESG”) acquiesced to these demands, “issu[ing] a preliminary recommendation that the [SEC] require the adoption of standards by which corporate issuers disclose material ESG risks.” (Allison Herren Lee, SEC Public Statement). To establish a clear and educated ESG disclosure framework, the SEC called for public comments from investors and market players on climate change disclosure. Id. This article discusses those comments, why some companies take issue with reporting ESG risks, and which form ESG disclosures might take. . .
Read MoreBitcoin has certainly become all the rage in the past few years. Its price captures the world’s attention, whether it rockets upwards or plummets downwards.
But now that Bitcoin’s price has been hovering around $60,000 between April 10 and April 18, 2021—higher than ever before—legendary investor Ray Dalio predicts that the United States government will likely ban the cryptocurrency. (Billy Bambrough, Forbes). He claims that no country, including the U.S., wants to compete with another currency for monetary hegemony. Id. A quick dive into the history and law surrounding Bitcoin and American currency itself will help clear up Mr. Dalio’s surprising claim…
Read MoreCOVID-19 ushered in a period of economic uncertainty. Stimulus, liquidity, and mounting debt have fueled inflation and in turn, the rise of cryptocurrency. (Julia La Roche, Yahoo Finance). Companies have been looking for alternatives to traditional securities in order to build and sustain their wealth during the period of economic uncertainty caused by COVID-19. Id. On February 8th Tesla, Inc. (“Tesla”) purchased a $1.5 billion stake in Bitcoin—a popular cryptocurrency. (Sam Shead, CNBC). On April 13, a single bitcoin was valued at approximately $65,000. (Omkar Godbole, CoinDesk). However, even with Bitcoin’s rising popularity, billionaire and manager of Bridgewater Associates, Ray Dalio recently predicted that the use of cryptocurrency will be prohibited in the United States in the coming months, citing the Gold Reserve Act of 1934. (Billy Bambrough, Forbes)…
Read MoreTrains are the future of a greener and more interconnected economy. In March 2021, Canadian Pacific Railway (“CPR”) and Kansas City Southern Railway Company (“KCS”) publicly announced that they would merge, a move that highlighted the railroad industry’s potential to modernize American commerce. (Dan Ronan, Transport Topics). With its promise to create the first United States-Mexico-Canada rail network, the deal inspired hope in easier trade and localized networks across North America. Id. Shortly after the merger announcement, in April 2021, KCS abandoned this deal for a more lucrative merger with Canada National Railway (“CN”), a competitor of CPR. (Greg Roumeliotis, Reuters)…
Read More