Law360, New York (July 16, 2009, 1:44 PM EDT) -- On July 1, 2009, the U.S. Securities and Exchange Commission, by a 3 to 2 vote, approved an amendment to New York Stock Exchange Rule 452 that will prohibit the exchange’s member brokers from providing a proxy to vote on behalf of a beneficial owner holding voting shares in “street name” on the election of directors unless the broker receives instructions on the election proposal from the beneficial holder.
This change eliminates “discretionary voting” for all director elections.
Broker discretion has typically been exercised in favor...
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