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News Release: 02-06
GRAY DAVIS, Governor
Date: 05/24/02
DEMETRIOS A. BOUTRIS, Commissioner
California Weighs in On Corporate Governance
Department of Corporations to Work with NASDAQ on Listing Standards Initiative
Sacramento, May 24, 2002 — The Department of Corporations announced today it has written a letter to The Nasdaq Stock Market, Inc. (NASDAQ) with recommendations on corporate governance listing standards.
"NASDAQ is currently undertaking its own examination of the standards to which it plans to hold the companies that list on its market," said California Corporations Commissioner Demetrios A. Boutris. "The Department of Corporations supports the adoption of listing standards that promote a financial services marketplace where corporate insiders, everyday employees and ordinary investors all share the same risks and enjoy the same choices. As one of the regulators with jurisdiction over the markets, we are looking forward to working with NASDAQ to develop standards that protect California investors and restore confidence in the market."
The Department's letter was addressed to Chairman Hardwick Simmons and dated May 7, 2002. It spoke to issues such as stock options, disclosure of financial information, investor education and employee compensation.
"We support the Department of Corporations' efforts to take a proactive role in corporate governance," said Mike Emen, Senior Vice President, NASDAQ Listing Qualifications Department. "We are committed to enhancing the integrity of the markets and we look forward to working with the Department to further our common goal."
Authority to regulate the participation of certain securities in the NASDAQ derives from California Corporations Code section 25100(o).
The Department of Corporations is California's Investment and Financing Authority, reporting to the Business, Transportation and Housing Agency and the Governor. The Department is responsible for the regulation, enforcement and licensing of securities, franchises, off-exchange commodities, investment and financial services, independent escrows, consumer and commercial finance lending and residential mortgage lending. For further information or to obtain a complaint form, see the Department's Web site at www.corp.ca.gov or call 1-866-ASK-CORP (1-866-275-2677).
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