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Nasdaq Corporate Governance Standards: Nasdaq to Require Prompt Notification of Immaterial Noncompliance with Corporate Governance Listing Standards

Sullivan & Cromwell LLP - June 10, 2010

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Nasdaq has amended its corporate governance listing standards to provide that, effective June 13, 2010, companies listed on the Nasdaq Stock Market will be required to provide Nasdaq with prompt notification after an executive officer of the company becomes aware of any noncompliance with Nasdaq’s corporate governance requirements, not just material noncompliance. This change conforms to an identical change recently made to the New York Stock Exchange rules. The reporting requirement, which is included in Nasdaq Stock Market Rule 5625, applies to both U.S. and non-U.S. listed companies.