In S&P 500, Firms Move Toward Board Declassification

Law360, New York (January 3, 2007, 12:00 AM EST) -- More companies are shedding an important defense against corporate takeovers by allowing shareholders to elect board members annually, according to an impending annual report from a research firm.

According to the report, penned by Institutional Shareholder Services, more than half of companies listed on the S&P 500 Index have now gone forward with so-called declassification of their boards of directors.

The data is a Wall Street milestone because it’s the first time declassified companies have broken the 50% mark in the Standard & Poor's bellweather index,...
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