Sec. 6. Board representation
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Not later than 1 year after the date of enactment of this Act, the Securities and Exchange Commission, in consultation with the National Labor Relations Board, shall issue rules to ensure that— director elections at United States corporations are fair and democratic; employee representation is meaningful and appropriate, taking into consideration— diversity of race, ethnicity, gender, sexual orientation, and gender identity; and the affiliation to historically underrepresented groups, including veterans of the Armed Forces and individuals with disabilities; covered employees that serve as a director of a United States corporation may be dismissed only for just cause; and covered employees receive any disclosure required to be made by the United States corporation to shareholders under the Securities and Exchange Act of 1934 ( 15 U.S.C. 78a et seq.).
Not less than 2/5 of the directors of a United States corporation shall be elected by the covered employees of the United States corporation using an election process that complies with the requirements of the rules issued under subsection (a). Paragraph
(1)shall take effect on the date that is 1 year after the date on which the Securities and Exchange Commission issues the rules required under subsection (a). The Securities and Exchange Commission, in consultation with the National Labor Relations Board, shall ensure that the elections described in subsection (b)(1) comply with the requirements of the rules issued by the Commission under subsection (a). The Secretary of Labor shall coordinate with the Office to ensure that the representation of the boards of directors of United States corporations comply with the requirements under subsection (b). If the representation with respect to the board of directors of a United States corporation fails to comply with the requirements under subsection
(b)for a period that is not less than 180 consecutive days— the Secretary of Labor— shall assess a civil money penalty against the United States corporation in an amount that is not less than $50,000 and not more than $100,000 for each day that such representation is not in compliance with those requirements, including for each day during that 180-day period; and may collect the penalty described in subclause
(I)beginning on the day after the date on which that 180-day period ends; and the Office may revoke the charter of the United States corporation.
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Sec. 6
Board representation
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