Corporate Governance Guidelines for the Cannabis Industry
Cannabis companies are subject to the same regulations and guidelines that apply to corporations throughout the United States. As the nationwide cannabis industry takes shape, implementing compliant and recommended governance policies helps businesses adapt.
Various federal laws establish requirements that apply to businesses in every state. For instance, cannabis companies must implement governance practices that satisfy the requirements of the most recent amendments to the Securities Act of 1933 and the Securities Exchange Act of 1934. The Sarbanes-Oxley Act of 2002 and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 contain elements that pertain to corporate governance, as well.
Since cannabis is still illegal under the Controlled Substances Act (CSA) of 1970, obtaining certain support, such as banking services, is more difficult. As a result, it’s important to ensure compliance with the ever-changing legal landscape. States also hold separate regulations and guidelines for cannabis companies, so cannabis companies should enact policies that satisfy requirements in their states and any other state in which they may do business.
At Harris Sliwoski, we help cannabis companies navigate governance laws in California, Utah, Colorado, Arizona, Oregon and Washington. Our team also has experience in international governance law, enabling us to support our clients’ most ambitious endeavors.
