Tag Archive for ‘U.S. Court of Appeals’
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.”
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.
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.
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.