Thursday, April 23, 2009
SEC Plans to Approve NYSE Rule to End Broker Voting of Customers' Shares
The Wall St. Journal reports that as early as next week the SEC will approve a NYSE Rule that will no longer permit brokers to exercise discretionary voting and vote customers' shares in uncontested elections. If true, this will be a major victory for activist shareholders. The proposed rule change has lanquished at the SEC for years; at one point, the SEC said they would take it up as part of a larger review of the shareholder proxy process, but that never happened. In February the SEC finally put the rule change out for public comment.. SR-NYSE-2006-92.
https://lawprofessors.typepad.com/securities/2009/04/sec-plans-to-approve-nyse-rule-to-end-broker-voting-of-customers-shares.html