Smart boards and nominating committees will put together slates of corporate directors that can stand up to increased shareholder scrutiny and activists
A series of potential legal changes that could make it easier for shareholders to nominate corporate directors is looming large. These include changes in Delaware law to permit the adoption of bylaws enabling shareholders who propose their own directors to be reimbursed for related expenses, an SEC proposal allowing investors with 1% or more in stock holdings to nominate board candidates, and a Shareholder Bill of Rights proposed by Senators Charles Schumer (D-N.Y.) and Maria Cantwell (D-Wash.).
Regardless of whether any of these changes become law, they reflect dissatisfaction with the way in which director renomination is addressed.
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