Corporate Governance and the Dodd Frank Act - Explained
How does the Dodd Frank Act Affect Corporate Governance?
If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
Table of ContentsWhat is the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank)?What are the Corporate Governance Provisions of the Dodd-Frank Act?Discussion QuestionPractice QuestionAcademic Research
What is the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank)?
Dodd-Frank was passed in response to the financial downturn beginning in 2007. While Dodd-Frank imposed extensive controls on banks and other lending institutions, it also prescribed corporate governance procedures designed to protect shareholder interests.
Next Article: Corporate Governance and Industry Standards Back to: CORPORATE GOVERNANCE
What are the Corporate Governance Provisions of the Dodd-Frank Act?
Notable provisions of Dodd-Frank include:
- Proxy Rights - Requires corporations allow shareholders have greater ability to nominate directors for election to the board in corporate proxy material.
- Proxy Disclosures - Requires corporations to make more extensive shareholder disclosures in all corporate proxies.
- Shareholder Voting Rights - Entitles shareholders to a non-binding vote on certain corporate governance issues.
Note: Shareholders may be entitled to cast votes on the proposed hiring and compensation of corporate executives. While these votes are not binding, they do allow the shareholders to openly evaluate and express their opinions on corporate governance matters.
- What are the primary state and federal corporate governance laws?
- What is the role of the state in corporate governance?
- What is the role of Securities Laws in corporate governance?
- What is the role of the Foreign Corrupt Practices Act in corporate governance?
- What is the Sarbanes-Oxley Act (SOX) effect on corporate governance?
- Sarbanes-Oxley Act (SOX)
- What is the Dodd-Frank Wall Street Reform and Consumer Protection Act effect on corporate governance?
- Corporate Monitors
- What industry organization standards affect corporate governance?
- How do proxy advisory firms affect corporate governance?
- What is the role of ethics in corporate governance?
Why do you think a Act that intends to protect the market against financial downturn imposes shareholder rights provisions on corporations? Can you explain how any of these provisions help make securities markets more stable?
What specific corporate governance procedures are required by the Dodd-Frank Act?