Securities Law

SEC to Vote on Shareholder Influence

The Securities and Exchange Commission is expected to vote today on whether to give shareholders more influence in the election of corporate board members.

The SEC has permitted companies to bar shareholders from changing corporate bylaws to permit them to advance their own director nominees, the Wall Street Journal (sub. req.) reports. But a federal appeals court ruled the SEC had erred.

The commission is considering two competing proposals. One would bar shareholder proposals for election bylaw changes, and the other permits them if offered by shareholders owning at least a 5 percent stake in a company.

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