SEC Chairman Moves to Give US States Power over Shareholder Resolutions
The agency said it may return shareholder proposal rules to states and modernize proxy communications as activists warn small investors could face new barriers.
8 Articles
8 Articles
SEC to Reconsider Preemption of State Law on Shareholder Proposals
The Securities and Exchange Commission has taken a significant step toward shifting authority over shareholder proposals from federal regulators to individual states. SEC Chairman Paul Atkins announced plans to reconsider the agency’s long-standing preemption of state corporate law in the area of shareholder resolutions, a move that could reshape how investors influence corporate governance across the United States. This development stems from a…
SEC chairman moves to give US states power over shareholder resolutions
US SEC chairman moves to give states power over shareholder resolutions
The U.S. Securities and Exchange Commission is considering rule changes for shareholder proposals. This shift could reduce investor activist influence and grant new powers to states. Regulations on shareholder proposals may become non-uniform across different states. Investors might face higher share ownership requirements to file resolutions. This change could lead to more votes against corporate board members.
The SEC is moving forward with a proposal to repeal the rules that allow shareholders of public companies to present initiatives for power, while Paul Atkins advocates that states recover that regulatory role. The plan still needs to overcome the White House review, a commission vote, and a period of public comment.
According to a Bloomberg report, as reported by ChainCatcher, the U.S. Securities and Exchange Commission (SEC) plans to repeal rules regarding when and how shareholders of publicly traded companies can file proxy proposals, according to a recent announcement from the White House Office of Management and Budget (OMB). The SEC submitted the proposal to the OMB for review last week, according to a notice released Monday. This is the latest step by…
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