SEC Moves to Scrap 80-Year Shareholder Proposal Rule, Shifting Power to States
Updated
Updated · The New York Times · Sep 18
SEC Moves to Scrap 80-Year Shareholder Proposal Rule, Shifting Power to States
3 articles · Updated · The New York Times · Sep 18
Summary
A 60-day SEC proposal would eliminate the federal process that has let shareholders force votes on company proposals for more than 80 years.
Paul Atkins, the Trump-appointed SEC chair, said the rollback fits his top regulatory priorities and argued no long-standing commission rule is exempt from review.
The rule has been a key tool for activists pressing companies on diversity, worker protections, environmental issues and executive pay, though the proposals are typically advisory.
If finalized, the change would leave states to set much of the framework for when shareholders can submit proposals and compel votes at incorporated companies.