Split SEC OKs Plan To Toughen Shareholder Proposal Rules

Law360 (September 23, 2020, 8:08 PM EDT) -- A divided Securities and Exchange Commission on Wednesday agreed to impose stiffer requirements for shareholders seeking to submit ballot proposals, drawing rebukes from critics who argue the changes favor corporate executives at the expense of investors.

By a 3-2 vote, the SEC enacted rules that raise thresholds affecting the ability of shareholders to submit new proposals or resubmit proposals that have previously failed. The SEC majority supporting the move, all of whom fill Republican seats, described the changes as modest fixes to outdated rules that have not been updated since 1998 and 1954, respectively.

Supporters also said the new 195-page rule reflects...

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