Last week, the Securities and Exchange Commission proposed new rules to facilitate the rights of shareholders to nominate corporate directors. The new rules were proposed in response to questions of accountability of corporate boards, particularly in light of the recent economic crisis, and represent the SEC's latest effort to address shareholder access since it proposed a major overhaul of proxy access rules in 2003. Under the proposed rules, qualifying shareholders would be able to have their nominees included in the company proxy ballot that is sent to all voters. Additionally, qualifying shareholders would be able to propose modifications to the company's governing documents concerning the company's nomination procedures or other director nomination disclosure provisions that do not conflict with SEC rules.
If you have any questions regarding these recent SEC proposals, please contact either the Womble Carlyle attorney with whom you usually work or one of our Corporate and Securities attorneys listed on the following webpage: WCSR Corporate & Securities Attorneys.