The Nasdaq Stock Market LLC has proposed a rule change to allow non-U.S. companies to have lower quorum requirements for shareholder meetings when their home country's laws conflict with Nasdaq's minimum requirement. Currently, Nasdaq requires a quorum of at least 33 1/3% of voting shares for meetings, but some countries, like France, have laws that mandate a lower percentage. This proposal aims to prevent non-U.S. companies from having to choose between complying with Nasdaq rules or their local laws. With proper certification from an independent counsel, Nasdaq may accept these lower quorum requirements, ensuring non-U.S. companies can continue following their home country regulations without breaching Nasdaq's rules.
Simple Explanation
Nasdaq wants to let companies from other countries follow their own country's rules for meeting attendance numbers, even if they are lower than Nasdaq's usual rules, so they don't get in trouble for following their local laws.