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Sarbanes-Oxley News & Developments
Most Shareholders Support Proxy AccessA survey has found that a majority of investors say public companies should require including shareholder nominees in their director elections.
> > The study of more than 1,000 stockholders by Harris Interactive reported that 84% said companies should be required to include all qualified candidates for the board of directors in their proxy voting materials, and 80% said there should be a process to include shareholder nominees.
The SEC is poised in the coming weeks to propose rules to allow shareholder nominees for election in certain circumstances. Although dozens of investors have submitted comment letters in favor of such a move, the survey provides more systematic evidence that a cross-section of everyday investors strongly supports the idea.
Too many board members have failed to adequately fulfill their responsibilities and have not acted in the best interests of shareholders. When this happens, shareholders need a process that allows them to replace those board members with qualified replacements.
Many business leaders are fighting the idea and have asked the SEC to at least adopt a go-slow approach, arguing that companies are still digesting the plethora of corporate-governance rules mandated by the Sarbanes-Oxley law.
Source: Hoovers
Published:2003-09-24
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