Board Operations
Corporate Governance Standards

As corporate fiduciaries, directors are expected to adhere to a variety of federal, state, and stock exchange requirements. This resource center provides links to and guidance on these standards. Additional guidance can be found in NACD’s Resource Center on Director Liability.

Major Federal Standards

Securities Act of 1933 Securities Exchange Act of 1934 Investment Company Act of 1940

Sarbanes-Oxley Act of 2002

Sarbanes-Oxley Rule on Audit Committee Independence Sarbanes-Oxley Rule on the Code of Ethics and Audit Committee Financial Expert (Sections 406 and 407) Sarbanes-Oxley Rule on Director Nominations Sarbanes-Oxley Rule on Internal Control (Section 404) Recent SEC Clarification of Sarbanes-Oxley Rule on Whistleblowing (post Dodd-Frank)

Dodd-Frank Act of 2010

Dodd-Frank Rule on Bank D&O Clawbacks (by FDIC) Dodd-Frank Rule on Bank Risk Committees (by Fed) Dodd-Frank Rule on Clawbacks of Executive Pay (pending) Dodd-Frank Rule on Compensation Committees and Consultants Dodd-Frank Rule on Pay Ratio Dodd-Frank Rule on Pay vs. Performance (pending) Dodd-Frank Rule on Proxy Access (Facilitating Director Nominations) Dodd-Frank Rule on Say on Pay and Golden Parachutes Dodd-Frank Rule on Whistleblower Bounties Recent SEC Guidance on Pay Ratio Calculation (2017)

State Standards

Model Business Corporation Act (June 2016 Exposure Draft) Delaware Corporation Law, Title 8 Delaware Court Opinions

Stock Exchange Standards

NYSE Listed Company Manual (see 303A.00) NASDAQ Listing Rules: 5600 Corporate Governance Requirements NASDAQ Corporate Governance Certification Form

NACD Comment Letters to the SEC on Dodd-Frank Rules

NACD Comment on Clawbacks of Executive Pay NACD Comment on Compensation Committees and Consultants NACD Comment on Pay Ratio (2013) NACD Comment on Pay Ratio (2017) NACD Comment on Pay vs. Performance (rule pending) NACD Comment on Proxy Access (facilitating shareholder nominations) NACD Comment on Proxy Disclosure Enhancements (director and executive compensation, diversity, board leadership, etc.) NACD Comment on Say on Pay NACD Comment on Whistleblower Bounties

NACD Comment Letters to the PCAOB on Audit Committee Matters

Communications-with-Audit-Committees Mandatory-Audit-Firm-Rotation Auditor’s Report (2013) Auditor's Report (2016) Audit Transparency – Disclosure of Partner

Comment Letters to SEC, NYSE, and Others on Additional Matters

Universal Proxy (to SEC) U.S. Proxy System (to SEC) Audit Committee Report (to SEC) Supervisory Expectations of Boards of Directors (to Federal Reserve Board) Audit Policy (to the European Commission) Overboarding (to Institutional Shareholder Services) Proxy Disclosure Enhancements (re SEC rule anticipating Dodd-Frank) Stock Exchange Listing Standards (to the New York Stock Exchange- 2003 Classic pp. 89-93) Roger W. Raber Testimony on Enron before the House Committee on Energy and Commerce (February 6, 2002) Kenneth Daly Testimony on Whistleblower Bounties – House Committee on Capital Markets (May 11, 2011)

NACD Amicus Briefs

Bohnen v. Troy, Brief of the National Association of Corporate Directors as Amicus Curiae, Urging Reversal, September 8, 2008 (Director Indemnification) Bohnen v. Troy, Court Response to Amicus Brief , September 11, 2008 (D&O Indemnification) In re: Rural/Metro, Amicus Brief of May 26, 2015 (Revlon Duty) Longview Energy Company v. The Huff Energy Fund, Amicus Brief of May 5, 2016 (Duty of Loyalty)

NACD Guidance and Tools

Blue Ribbon Commission Report on Director Liability Director Essentials: Strengthening Compliance and Ethics Oversight Customizable Director Role Description Resource Center: Director Liability NACD Blog on New Auditor’s Report Standard (2017) Avoiding Conflicts of Interest Board Leadership Structure Boards and Regulation FD Fiduciary Duties Director Independence Oversight of the Independence Auditor Role of the Executive Chair Role of proxy advisory firms Role of the SEC Subsidiary Governance