Boards Confront New Standards Amid Regulatory Limbo

This mid-quarter NACD policy brief summarizes current legislative, regulatory, and legal developments affecting boards and advises members of related NACD advocacy.

Regulatory uncertainty lingers in boardrooms this quarter as new governance standards emerge. Thanks to the Congressional Review Act (CRA), any regulations issued this summer could be overturned next year if there is a “red wave” in the November elections. At the same time, some major rules that have already passed are being challenged and even vacated in court. But such nullification risks have not deterred a slew of agencies—including the Department of Justice (DOJ), the Federal Deposit Insurance Corp. (FDIC), the Public Company Accounting Oversight Board (PCAOB), and the Securities and Exchange Commission (SEC)—from proposing major programs or rules that will affect boards. Meanwhile, two landmark court decisions are complicating the compliance mission: Macquarie Infrastructure Corp. v. Moab Partners in the US Supreme Court and McRitchie v. Zuckerberg et al. in Delaware.

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Alexandra Reed Lajoux, Ph.D., M.B.A., is a founding principal of Capital Expert Services, LLC (CapEx). She serves NACD as chief knowledge officer emeritus.