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SEC Votes to Restrict Shareholder Proxy Access

Reuters
Wednesday, 28 Nov 2007 | 1:47 PM ET

The U.S. Securities and Exchange Commission voted 3-1 Wednesday to allow companies to exclude shareholder proposals regarding director nominations from the annual proxy statement.

Shareholders vs. the SEC
The SEC will determine today how much power shareholders will have in nominating board directors, with John Castellani The Business Roundtable; Dan Pedrotty, AFL-CIO and CNBC's Dylan Ratigan

The rule codifies the agency's long-standing interpretation of its proxy access rules, which was cast into doubt by a 2006 federal appeals court decision.

The SEC commissioners did not vote on a second proxy access proposal that would have given shareholders a way to nominate corporate directors if they owned at least 5 percent of a company's stock and if other conditions were met, such as disclosure requirements.

The agency did, however, pledge to reopen the issue of proxy access in the near future.

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