Thursday, September 30, 2010

S.E.C. Sued Over Shareholder Rule -

S.E.C. Sued Over Shareholder Rule -
The SEC is being sued by two groups to block this.

"The S.E.C., in a 3-2 vote, stipulated that investors or groups of shareholders who have owned 3 percent of a company for three years could have candidates on proxy statements. Under the regulation, shareholders would be able to nominate at least one director and as much as 25 percent of a board. "

We will talk more about it in class, but I have a hard time imagining a firm being "hijacked" by the inclusion of another candidate. Shareholders do not need to vote for the candidate just because (s)he is listed on the proxy.

1 comment:

Highgamma said...

I guess CEOs don't want their near-monopoly power over appointments to the Board of Directors to wane.