Improving Corporate Governance Through Diversity Act of 2021

Hozzl · 2023-03-08T20:26:28Z

Explore the details of House Bill 1277 Improving Corporate Governance Through Diversity Act of 2021 currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Finance and Financial Sector. Stay informed on legislative developments.

3/8/2023, 8:26 PM

Summary of Bill HR 1277

Bill 117 HR 1277, also known as the Improving Corporate Governance Through Diversity Act of 2021, aims to promote diversity within corporate boards of directors. The bill requires public companies to disclose information about the gender, racial, and ethnic diversity of their board members and nominees. This information would be included in annual reports filed with the Securities and Exchange Commission (SEC).

The bill also requires the SEC to establish a Diversity Advisory Group, which would be responsible for studying and making recommendations on strategies to increase diversity within corporate boards. The group would consist of experts in corporate governance, diversity, and inclusion.

Supporters of the bill argue that increasing diversity within corporate boards can lead to better decision-making, improved company performance, and increased shareholder value. They believe that by requiring companies to disclose information about their board diversity, it will encourage companies to prioritize diversity and inclusion in their leadership. Opponents of the bill argue that it is unnecessary government intervention in private business practices and that companies should be able to make their own decisions about board composition. They also raise concerns about the potential costs and administrative burdens of complying with the new disclosure requirements. Overall, the Improving Corporate Governance Through Diversity Act of 2021 seeks to address the lack of diversity within corporate boards and promote greater transparency and accountability in corporate governance. It remains to be seen how the bill will be received by Congress and whether it will ultimately become law.

Congressional Summary of HR 1277

Improving Corporate Governance Through Diversity Act of 2021

This bill requires certain issuers of securities to disclose the racial, ethnic, and gender composition of their boards of directors and executive officers, as well as the status of any of those directors and officers as a veteran. It also requires the disclosure of any plan to promote racial, ethnic, and gender diversity among these groups.

The Securities and Exchange Commission must establish a Diversity Advisory Group to report on strategies to increase gender, racial, and ethnic diversity among board members.

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Current Status of Bill HR 1277

Bill HR 1277 is currently in the status of Bill Introduced since February 24, 2021. Bill HR 1277 was introduced during Congress 117 and was introduced to the House on February 24, 2021. Bill HR 1277's most recent activity was Placed on the Union Calendar, Calendar No. 164. as of January 20, 2022

Bipartisan Support of Bill HR 1277

Total Number of Sponsors

Democrat Sponsors

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Unaffiliated Sponsors

Total Number of Cosponsors

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Policy Area and Potential Impact of Bill HR 1277

Primary Policy Focus

Finance and Financial Sector

Potential Impact Areas

Advisory bodiesBusiness recordsCongressional oversightCorporate finance and managementEmployment discrimination and employee rightsGovernment information and archivesGovernment studies and investigationsMinority employmentRacial and ethnic relationsSecuritiesSex, gender, sexual orientation discriminationVeterans' education, employment, rehabilitationWomen in businessWomen's employment

Alternate Title(s) of Bill HR 1277

Improving Corporate Governance Through Diversity Act of 2021Improving Corporate Governance Through Diversity Act of 2021Improving Corporate Governance Through Diversity Act of 2021To amend the Securities Exchange Act of 1934 to require the submission by issuers of data relating to diversity, and for other purposes.

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