How HR 8612 changes current law

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

This bill prohibits public companies from repurchasing their shares on the open market, mandates employee representation on corporate boards, and alters the SEC's regulatory framework.

• 15 U.S.C. 78f

  No issuer may purchase an equity security of the issuer on a national securities exchange.

  Public companies are prohibited from buying back their own shares on national securities exchanges.

• 15 U.S.C. 78l

  No issuer may register securities on a national exchange unless at least \1/3\ of the issuer's directors are chosen by the issuing company's employees in a one-employee-one-vote election process.

  Requires that one-third of a company's board of directors be elected by employees.

• 17 C.F.R. § 240.10b-18

  Section 240.10b-18 of title 17, Code of Federal Regulations, shall have no force or effect.

  Nullifies the regulations allowing companies to repurchase shares under certain conditions.