Wednesday, July 25, 2007
The SEC voted today to solicit public comments on two competing proposed rules dealing with shareholders' access to the management proxy statement to nominate directors. One (favored by Republican Commmissioners Atkins and Casey) would allow management to keep shareholders' proposals off the management proxy statement. The other (favored by Democrat Commissioners Campos and Nazareth) would allow five percent shareholders to place proxy-access proposals before the shareholders for their approval. Chair Cox voted for both and expressed a preference for the second. He also stated his intention to have a "clear, unambiguous rule" in place for the 2008 proxy seasion. WSJ, SEC to Consider Proposals On Shareholder Influence. Chair Cox's opening remarks at the SEC meeting provide a description of the background and further information about the two proposals.