Leadership and Companies
SEC Proposes Shifting Shareholder Proposals To State Law, Easing Proxy Rules
The SEC proposed rescinding Rule 14a-8 and easing proxy solicitation requirements, including a shorter broker search period.
What happened
The SEC proposed rescinding Rule 14a-8, which governs shareholder proposals, arguing it exceeds federal authority and intrudes on state corporate law. Responsibility would shift to state law and company governing documents. Separately, the SEC proposed modernising proxy rules, including cutting the broker search period from 20 business days to five. Public comments will remain open for 60 days after publication.
Why it matters
If adopted, companies and shareholders would face a framework shaped more by state law and governing documents, while proxy communications could require less time and paperwork.
Source: U.S. SEC Press Releases