Monday, March 2, 2009
NYSE Files Amendment to Rule Change Eliminating Broker Discretionary Voting in Uncontested Elections
The New York Stock Exchange first filed its proposed rule change eliminating broker discretion in voting in uncontested directors' elections in October 2006. It has just filed Amendment 4 with the SEC. The NYSE is proposing to amend NYSE Rule 452 to eliminate broker discretionary voting for the election of directors. Rule 452, titled “Giving Proxies by Member Organizations,” allows brokers to vote on "routine” proposals if the beneficial owner of the stock has not provided specific voting instructions to the broker at least 10 days before a scheduled meeting. The proposal would also codify two previously published interpretations that do not permit broker discretionary votes for material amendments to investment advisory contracts. SEC Rel. No. 34-59464; File No. SR-NYSE-2006-92.