SEC Asks for Delaware's Help In Proxy-Cost Fight

Law360, New York (June 30, 2008, 12:00 AM EDT) -- The Securities and Exchange Commission has asked the Delaware Supreme Court to rule on whether companies have to reimburse shareholders for the costs of even partially successful short-slate proxy contests.

The case in question centers on whether Islandia, N.Y.-based business software developer CA Inc. should be required to reimburse the American Federation of State, County and Municipal Employees for a short-slate proxy contest that the union plans to stage at a shareholders meeting in September.

The AFSCME says CA's board of directors should reimburse any shareholder...
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