The Magazine of Corporate Responsibility

Tag Archive for ‘Business Roundtable’

Federal Appeals Court Vacates SEC Proxy Access Rules

The U.S. Court of Appeals for the District of Columbia Circuit vacated Securities and Exchange Commission rules adopted in 2010 designed to give shareholders the ability to nominate directors through corporate proxy materials. The court ruled that the SEC “acted arbitrarily and capriciously for having failed once again…to adequately assess the economic effects of a new rule.”

Study: Delay in SEC’s Proxy Access Rule Proves Its Value

The study found that in a one-day “event window” around October 4, when the SEC announced delay of the shareholder proxy access rule, share prices of companies that would have been most exposed to shareholder access declined significantly – about 42 basis points – compared to share prices of companies that would have been most insulated from the rule.

SEC Puts Proxy Access Rules on Hold

The Securities and Exchange Commission put the proxy access movement on hold, granting a request by business groups to stay the SEC’s recently adopted rules giving shareholders a procedure to put nominees on the ballot at corporate elections for directors. The decision likely makes proxy access moot for the 2011 proxy season.

Business Groups Sue to Block Proxy Access

The U.S. Chamber of Commerce and the Business Roundtable filed a legal challenge to the recently issued Securities and Exchange Commission rules on proxy access. The groups have asked the SEC to stay adoption of rules giving certain shareholders the right to include their nominees in corporate proxy materials. The rules have been scheduled to take effect Nov. 15, 2010.

Senate Negotiators Move to Limit Proxy Access in Finance Bill

To the dismay of activist investor groups, Senate Banking Committee chairman Christopher Dodd proposed that investors seeking to nominate directors for shareholder votes be required to own at least a 5% interest in the company for two years. Few, if any, institutional investors would be able to meet such a requirement.

Proxy Advisors Find Themselves in the Spotlight

Proxy advisory services play a key role because institutional holders turn to them for advice when voting billions of shares at annual meetings. Questions are now being raised about the influence of the services and whether more formal oversight is needed. As a result, proxy advisory services may be about to start receiving their own report cards for a change.