{"id":925,"date":"2011-08-05T13:18:51","date_gmt":"2011-08-05T13:18:51","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2011\/08\/secs_proxy_access_rule_is_reje"},"modified":"2022-03-09T16:07:15","modified_gmt":"2022-03-09T22:07:15","slug":"secs-proxy-access-rule-is-reje","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/secs-proxy-access-rule-is-reje\/","title":{"rendered":"SEC\u2019s Proxy Access Rule is Rejected by Appeals Court"},"content":{"rendered":"<p>\t\t\t\tThe U.S. Court of Appeals for the District of Columbia Circuit has struck down a Securities and Exchange Commission rule that would have let company shareholders nominate one or two director nominees to their boards. The proxy access rule would have allowed groups with possession of a minimum 3% voting power of a company&#8217;s stock for a minimum of three years to nominate board candidates. Companies would have had to include information about these shareholder-nominated director candidates in their proxy materials.<\/p>\n<p>The SEC had approved the regulation last year. It would have gone into effect in November, but the Commission stayed it after the US Chamber of Commerce and the Business Roundtable filed their legal challenge asking for the stay. The Business groups had said the rule was in violation of the Administrative Procedure Act and would &#8220;handcuff directors and boards,&#8221; exclude the majority of retail shareholders, and worsen the &#8220;short-term focus&#8221; considered among the main causes of the economic crisis. There were also concerns that the proxy access rule would let hedge funds, union-connected pension funds, corporate raiders, and hedge funds elect directors who would do as they directed. <\/p>\n<p>The Chamber of Commerce and Business Roundtable also accused the SEC of disregarding studies and evidence that revealed the&#8221; adverse consequences of proxy access,&#8221; attempting to restrict the ability of shareholders to stop special interest groups from starting up expensive election contests, and not giving full consideration to state laws about access to principles about and related to proxy that already exist. <\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/secs-proxy-access-rule-is-reje\/\"  title=\"Continue Reading SEC\u2019s Proxy Access Rule is Rejected by Appeals Court\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. Court of Appeals for the District of Columbia Circuit has struck down a Securities and Exchange Commission rule that would have let company shareholders nominate one or two director nominees to their boards. The proxy access rule would have allowed groups with possession of a minimum 3% voting power of a company&#8217;s stock [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3740,3801],"tags":[],"class_list":["post-925","post","type-post","status-publish","format-standard","hentry","category-miscellaneous","category-sec"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>SEC\u2019s Proxy Access Rule is Rejected by Appeals Court &#8212; Investor Lawyers Blog &#8212; August 5, 2011<\/title>\n<meta name=\"description\" content=\"The U.S. Court of Appeals for the District of Columbia Circuit has struck down a Securities and Exchange Commission rule that would have let company &#8212; August 5, 2011\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/secs-proxy-access-rule-is-reje\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"SEC\u2019s Proxy Access Rule is Rejected by Appeals Court &#8212; 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