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Sarbanes-Oxley News & Developments
SEC Proposes Director Nomination RulesProposal to have proxy materials include nominees for election of directors.
> > The SEC proposed rules that would, under certain circumstances, require public companies to include in their proxy materials security holder nominees for election as director. Release Nos. 34-48626, IC-26206 (October 14, 2003). The proposed rules are intended to create a mechanism for nominees of long-term security holders, or groups of long-term security holders, with significant holdings to be included in company proxy materials where security holders have the right under state law to nominate directors and evidence suggests that the company has been unresponsive to security holder concerns as they relate to the proxy process. The rules would apply to investment companies as well as other public companies. Comments on the proposal are due 60 days after publication in the Federal Register.The proposal has attracted an unusually large amount of controversy even before the SEC proposal, and a large number of comments is expected. The SEC press release from last week, when the Commission voted to propose the rules and the proposing release is available online.
Source: FundLaw
Published:2003-10-15
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