SEC chairman moves to give US states power over shareholder resolutions
SPY•SEC weighs rescinding Rule 14a-8
The U.S. Securities and Exchange Commission has taken a step toward eliminating its requirements for shareholder proposals at public companies and giving new powers to states, a shift that would diminish the influence of investor activists.
In a regulatory notice dated Friday, the SEC said it would consider changes to the rule known as 14a-8. It establishes requirements for shareholder proposals in public companies' annual proxy statements including minimum ownership.
Via e-mail, a spokesman for SEC Chairman Paul Atkins said he has "highlighted concerns that the SEC's Rule 14a-8 on shareholder proposals exceeds the Commission’s authority and infringes upon state laws. To that end, the Commission is expected to consider a proposal to rescind the rule and return the role of regulating shareholder proposals to the states."
