Shareholder Democracy: Public Cos.' Brave New World

Law360, New York (August 31, 2010, 1:58 PM EDT) -- The U.S. Securities and Exchange Commission adopted major changes to the U.S. proxy rules on Aug. 25, 2010, that will facilitate the exercise by shareholders of their rights under state law to nominate and elect directors to public company boards of directors.

The SEC adopted the new rules by a 3-2 vote along party lines in substantially the same form as originally proposed June 10, 2009. This action by the SEC represents a major flip-flop from the commission’s position just two years ago when it chose...
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