State and Federal Corporate Governance Laws

Cite this article as: Jason Mance Gordon, "State and Federal Corporate Governance Laws," in The Business Professor, updated January 13, 2015, last accessed April 8, 2020,
Video Thumbnail
State and Federal Corporate Governance Law
This video explains what are the primary state and federal corporate governance laws.

Next Article: State Law and Corporate Governance


What state and federal laws primarily contribute to corporate governance?

Regulation of corporate governance practices is a mixture of state and federal law and organizational requirements. Below is a list of the primary state and federal laws and stock exchange rules contributing to corporate governance:

•    state-specific corporate laws (particularly Delaware law and Model Business Corporation Act states),
•    the Securities Exchange Act of 1934 (’34 Act) and SEC Rules,
•    the Sarbanes-Oxley Act of 2002 (SOX)
•    the Foreign Corrupt Practices Act (FCPA)
•    the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank),
•    the listing standards of the NYSE and NASDAQ
•    the advisor rules from Proxy Advisory Firms.
Each of the above sources of regulation are discussed in detail below.

•    Discussion: If corporate entities exist by virtue of state law, why do you think that there are so many federal laws and private organization standards concerning corporate governance?

Was this article helpful?