SEC Publishes Proposed Rule Facilitating Shareholder Director Nominations

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SEC Publishes Proposed Rule Facilitating Shareholder Director Nominations

On June 10, the Securities and Exchange Commission proposed

changes to the federal proxy rules to permit certain shareholders

broader access to company proxy materials for the purpose of

nominating independent directors.

Shareholders do not currently have the right to include director

nominees in a company's proxy statement. Rather, a shareholder

seeking to nominate its own director nominee must mount its own

proxy contest under the Commission's proxy rules. One of the

primary stated reasons for the proposed rule changes is the expense

and burden to shareholders participating in such proxy battles. In

its release, the Commission states that including shareholder

director nominees in company proxy materials would be "the

most direct and effective method of facilitating shareholders'

rights in connection with the nomination and election of

directors."

Proposed Rule...

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