AFTER decades of being shut out of the director election process by the Securities and Exchange Commission, shareholders scored a big win last week. The agency is considering making it easier for investors to nominate alternative directors to corporate boards.
The proposal’s terms vary, based on company size, but investors who abide by a set of relatively simple rules could place director nominees on corporate proxies and put them to a shareholder vote.
Those interested in nominating directors at a large company, for example, must own a total of at least 1 percent of its shares and must have held that stake for more than a year. They must also be willing to certify that they are not trying to take over the company or gain more than a minority representation on the board.
See full Article.
Posts
