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Web Extra: Shareholders Win New Rights

If you’re a shareholder you just won some new and important powers.

Earlier this week, the SEC voted 3-2 to adopt a rule that gives shareholders an easier way to nominate company directors.

According to the new rule, a shareholder or group of shareholders, who hold at least 3 percent of the company's stock for at least three years, can nominate directors on the proxy ballots sent to investors.

Currently, shareholders can only nominate directors at annual meetings.

And that is often too late, according to the Washington Post, because months earlier the company sends ballots of its self-chosen nominees to investors who won't be able to attend the annual meeting. These statements help solidify a company's choices, making it virtually impossible for a candidate first nominated at an annual meeting to receive enough votes to win a spot on the board.

The new rule will go into effect 60 days after publication in the government's federal register. Eligible shareholders most likely will be able to place their nominees on the corporate ballot at 2011 annual meetings, which typically take place in May.

*Learn more about the developments from Fast Money chairwoman Karen Finerman. Watch the web extra!

This content is only available online - you won't find these trades on TV.





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Trader disclosure: On August 27th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova Owns (AXP), (GS), (IBM), (QCOM), (AAPL), (GOOG), (BRCM), (TER), (MSFT), (C), (MRVL), (BMO), (V), (POT), (OXY), (GLD), (SU), (FCX), (APA), (XBI); Jon Najarian owns (BAC), short calls; Jon Najarian owns (LNC), short calls; Jon Najarian owns (SNDK), short calls; Jon Najarian owns (STX), call spreads; Jon Najarian owns (X), short calls; Karabell owns (AAPL); (CSCO), (FCX), (GS), (POT), (RIMM); Boockvar owns (GLD), (SLV), (XOM), (NEM), (MOS)

For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (DRYS)
Virtus Investment Partners own more than 1% of (EXR)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (IGE)
Virtus Investment Partners own more than 1% of (LDR)
Virtus Investment Partners own more than 1% of (LPHI)
Virtus Investment Partners own more than 1% of (XLB)
Virtus Investment Partners own more than 1% of (MGRC)
Virtus Investment Partners own more than 1% of (NRCI)
Virtus Investment Partners own more than 1% of (DBV)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (XLK)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (YDNT)

For Zach Karabell
River Twice own (CSCO)
River Twice own (GS)
River Twice own (POT)

For Mike Khouw
Cantor Fitzgerald makes a market in (AAPL)
Cantor Fitzgerald makes a market in (ADM)
Cantor Fitzgerald makes a market in (AKAM)
Cantor Fitzgerald makes a market in (AMZN)
Cantor Fitzgerald makes a market in (BAC)
Cantor Fitzgerald makes a market in (BKC)
Cantor Fitzgerald makes a market in (CHK)
Cantor Fitzgerald makes a market in (CML)
Cantor Fitzgerald makes a market in (CSCO)
Cantor Fitzgerald makes a market in (CVLT)
Cantor Fitzgerald makes a market in (DELL)
Cantor Fitzgerald makes a market in (FCX)
Cantor Fitzgerald makes a market in (GS)
Cantor Fitzgerald makes a market in (INTC)
Cantor Fitzgerald makes a market in (ISLN)
Cantor Fitzgerald makes a market in (JOYG)
Cantor Fitzgerald makes a market in (KBH)
Cantor Fitzgerald makes a market in (LEN)
Cantor Fitzgerald makes a market in (LNC)
Cantor Fitzgerald makes a market in (MSFT)
Cantor Fitzgerald makes a market in (NEM)
Cantor Fitzgerald makes a market in (NZ)
Cantor Fitzgerald makes a market in (PAR)
Cantor Fitzgerald makes a market in (POT)
Cantor Fitzgerald makes a market in (RIMM)|
Cantor Fitzgerald makes a market in (SCHW)
Cantor Fitzgerald makes a market in (SLV)
Cantor Fitzgerald makes a market in (SNDK)
Cantor Fitzgerald makes a market in (STX)

For Colin Gillis
***No Disclosures***

For Michael Block
***No Disclosures***


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