Delaware entities will have to put shareholder nominees on the proxy and reimburse successful campaigns. The SEC and the Senate have new regs in store, too
Earlier this year, activist investor William A. Ackman waged a $10 million fight to get five nominees, including himself, elected to the board of discount retailer Target (TGT). He lost. Ackman, founder of the $4.5 billion hedge fund Pershing Square Capital Management, attributes his defeat in part to the fact that most investors could turn in only one of two ballots: the slate of directors from the board's nominating committee or the one put together by him.
Now, a triple threat of pending and potential legal changes could give Ackman and other shareholders an easier time shaking up corporate boards. As of Aug. 1 stockholders of Delaware corporations—which account for more than 50% of all public companies in the U.S.—will be able to adopt bylaws that let them suggest their own directors on a company proxy statement.
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