Regulatory & Compliance

This week’s governance, compliance and risk-management stories from around the web – At a Texas A&M corporate law symposium, SEC chairman Paul Atkins outlined his vision for revitalizing US capital markets and modernizing federal securities regulation. Speaking at the Federal Reserve Bank of Dallas, Atkins emphasized the importance of state competition in corporate law, noting Texas’s recent legislative reforms aimed at deterring ‘abusive litigation’ and enhancing shareholder protections as potential alternatives to Delaware’s long-standing dominance. He argued that such state-level legal innovation can attract companies seeking less politicized governance frameworks. During the speech, Atkins also said the SEC is considering…

The Division of Enforcement is refocusing its direction, aligning closely with chairman Atkins’ ‘back to basics’ regulatory approach When SEC director of the Division of Enforcement Margaret Ryan addressed the Los Angeles County Bar Association last week, her remarks gave a clear indication of how the SEC’s enforcement arm intends to operate under her leadership and under the broader direction of chairman Paul Atkins. Ryan, who assumed the role in September 2025, confirmed that enforcement priorities remain rooted in the enforcement of federal securities laws, but revealed a renewed focus on resource constraints and a change in philosophical approach at…

Shareholders and courts may scrutinize whether directors are meeting their fiduciary duty by failing to use tools that are central to effective oversight Activist investors may soon begin scrutinizing how boards use AI as closely as they do ESG and cyber-security, according to Nithya Das, general manager, governance and chief legal officer at Diligent. She says that the issue is not efficiency, but fiduciary effectiveness. Das believes transparency demands around AI will focus on whether directors are fully using available tools to meet their duties. ‘With AI tools, it’s much easier to collect data, benchmark, conduct research and perform scenario…

This week’s governance, compliance and risk-management stories from around the web – A federal judge in Texas has ruled a state law targeting ESG investment practices unconstitutional, marking a significant setback for state efforts to regulate corporate sustainability policies. The law, passed in 2021 as Senate Bill 13, restricted the state’s ability to invest in, or contract with companies that it said were boycotting the fossil fuel industry, effectively pressuring financial firms to avoid certain ESG-related criteria. As reported by Reuters (paywall) on February 5, US District Judge Alan Albright ruled the statute violated the First Amendment, calling it ‘facially…

SEC chairman says reviving the US IPO market will require stripping politics out of corporate governance In a February episode of the Pod Force One podcast, Atkins made headlines with a bold mission: to ‘make IPOs great again’ by addressing what he sees as regulatory and cultural barriers that have discouraged companies from going public. His comments indicate a change in how the SEC plans to support capital formation in the US. Atkins told host Miranda Devine that IPO activity in recent years has been depressed in part because companies are repelled by what he described as ‘mayhem’ in governance…

As companies continue to experiment with AI, the topic of what its role means for governance was the focus of a recent Governance Intelligence briefing AI is no longer a future consideration for boards but very much a current concern. According to speakers at Governance Intelligence’s briefing – AI in the boardroom: what governance teams need to know in 2026 – held in partnership withDiligent, the technology is already embedded in boardroom behavior. The speakers agreed that the real risk for governance professionals heading into 2026 is not misuse, but inaction. From the outset, the most striking takeaway was the…

A rulemaking petition is urging the regulator to close long standing disclosure gaps for insiders at foreign companies On the latest episode of the Governance Matters podcast, senior reporter Natalie Bannermanrounds up the most compelling stories from the end of 2025 well into the new year. Top of the bill are President Trump’s proxy advisor executive order targeting ISS and Glass Lewis and the changes to Rule 14a-8, the shareholder proposal rule which will change the outlook for the 2026 proxy season. Elsewhere, we look at how California’s AI legislation will curb lawyers’ use of generative technologies, the sharp shift…

As AI shifts from experimentation to mandate at major public companies, boards are being forced to confront whether their governance models can keep pace The Nasdaq-listed battery developer Stardust Power has appointed Bruce Czachor as its new general counsel. Reporting directly to founder and CEO Roshan Pujari, Czachor will oversee all legal, regulatory and corporate governance matters for the company. He enters the role with over 30 years of experience, having most recently served as EVP and chief legal officer at Piedmont Lithium. During his tenure he oversaw the cross-border public merger between Piedmont Lithium and Elevera Mining (formerly Sayona…

A new Senate Bill from Thomas Umberg seeks to foster human oversight and accountability in the use of AI for lawyers A new Senate bill introduced in California aims to curb how lawyers and arbitrators and lawyers can use AI to support their work, with a focus on data protection and preventing so-called ‘hallucinations’ from fabricating false information. Introduced by Democratic senator Thomas Umberg, amended Senate Bill 574 would require legal professionals to ensure confidential information is not entered into AI systems, to personally review any AI generated work and to prohibit delegation of decision making to machines. The bill…