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Improving Corporate Governance Through Diversity Act of 2023
12/15/2023, 3:59 PM
Summary of Bill HR 4177
Bill 118 hr 4177, also known as the Improving Corporate Governance Through Diversity Act of 2023, aims to promote diversity within corporate boards of directors. The bill requires publicly traded companies to disclose information about the gender, racial, and ethnic diversity of their board members and nominees. This information will be made publicly available in annual reports and on company websites.
Additionally, the bill requires companies to establish a diversity policy that outlines their efforts to promote diversity within their board of directors. Companies must also disclose whether they have a director who is a minority or a woman, and if not, explain why.
The bill also includes provisions for the Securities and Exchange Commission (SEC) to establish a Diversity Advisory Group to provide recommendations on how to improve diversity within corporate boards. The SEC will also be required to conduct a study on the diversity of boards of directors and report their findings to Congress. Overall, the Improving Corporate Governance Through Diversity Act of 2023 aims to increase transparency and accountability within corporate boards of directors and promote diversity in corporate leadership.
Additionally, the bill requires companies to establish a diversity policy that outlines their efforts to promote diversity within their board of directors. Companies must also disclose whether they have a director who is a minority or a woman, and if not, explain why.
The bill also includes provisions for the Securities and Exchange Commission (SEC) to establish a Diversity Advisory Group to provide recommendations on how to improve diversity within corporate boards. The SEC will also be required to conduct a study on the diversity of boards of directors and report their findings to Congress. Overall, the Improving Corporate Governance Through Diversity Act of 2023 aims to increase transparency and accountability within corporate boards of directors and promote diversity in corporate leadership.
Congressional Summary of HR 4177
Improving Corporate Governance Through Diversity Act of 2023
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.
Read the Full Bill
Current Status of Bill HR 4177
Bill HR 4177 is currently in the status of Bill Introduced since June 15, 2023. Bill HR 4177 was introduced during Congress 118 and was introduced to the House on June 15, 2023. Bill HR 4177's most recent activity was Referred to the House Committee on Financial Services. as of June 15, 2023
Bipartisan Support of Bill HR 4177
Total Number of Sponsors
1Democrat Sponsors
1Republican Sponsors
0Unaffiliated Sponsors
0Total Number of Cosponsors
0Democrat Cosponsors
0Republican Cosponsors
0Unaffiliated Cosponsors
0Policy Area and Potential Impact of Bill HR 4177
Primary Policy Focus
Finance and Financial SectorAlternate Title(s) of Bill HR 4177
Improving Corporate Governance Through Diversity Act of 2023
Improving Corporate Governance Through Diversity Act of 2023
To amend the Securities Exchange Act of 1934 to require the submission by issuers of data relating to diversity, and for other purposes.
Comments
Sponsors and Cosponsors of HR 4177
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