BLT: September 2010

 

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KEEPING CURRENT: Proxy Access Year One: What to Do Now

The SEC's new Rule 14a-11 enables long-term substantial shareholders, acting alone or in concert, to nominate candidates for up to a quarter of a company's board, and to include those nominees in the company's own proxy statement in competition with the incumbent board's nominees. The SEC also amended Rule 14a-8 to allow for shareholder proposals that would broaden proxy access. The author analyzed these changes and offers his initial thoughts as to what to expect under the new rules and recommends an action plan.