SEC’s New Guidance On Shareholder Proposals

Law360, New York (December 7, 2009, 1:02 PM EST) -- On Oct. 27, 2009, the U.S. Securities and Exchange Commission's Division of Corporation Finance issued Staff Legal Bulletin No. 14E (“SLB 14E”), providing guidance regarding its interpretation of the “ordinary business matters” exclusion in Rule 14a-8(i)(7) under the Securities Exchange Act of 1934.

In SLB 14E, the division sets forth the basic analysis for determining those issues that will “transcend” the ordinary business matters exclusion in Rule 14a-8(i)(7).

The division also addresses the application of this analysis to particular types of shareholder proposals, setting forth the...
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