Nasdaq Rule 5605

Nasdaq Rule 5605 is a regulation that requires publicly traded companies listed on the Nasdaq stock exchange to have a certain level of governance to ensure transparency and accountability. Specifically, it mandates that companies must have an independent board of directors, including a designated audit committee made up of independent members. This rule is aimed at protecting investors by ensuring that corporate decisions are made fairly and without undue influence from management, thereby enhancing investor confidence in the integrity of the listed companies.