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Public Companies New Rule Change and Corporate Governance Update

July 24, 2016

NASDAQ is adopting a rule applicable to its listed companies that will require those companies to publicly disclose compensation or other payments by third parties to board members or nominees in connection with that person's candidacy or service as a director. Under the new rule, NASDAQ-listed companies must disclose the material terms of all third-party compensatory agreements or arrangements for nominees and directors in proxy statements filed on or after August 1, 2016.

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