Commissioner Lee: Statement on Shareholder Rights

Commissioner Allison Herrren Lee expressed her objections to the Republican Commissioners’ proposed rule on proxy proposals and proxy advisors, starting with the core point that no one has documents any kind of actual problem. There is a common theme that unites the two proposals before us today: they both would operate to suppress the exercise…

Commissioner Jackson: Statement on Proposals to Restrict Shareholder Voting

On November 5, the SEC issued its proposed rules on shareholder proposals and proxy advisors and they are atrocious, violating every possible procedural and substantive requirement for administrative rule making. We will be commenting, urging others to comment, and covering the proceedings in detail. First, the statement objecting to the proposal from Commissioner Robert Jackson:…

A Professor Filed a Shareholder Lawsuit to Restrict Shareholder Rights

“An enormous zeal for the overdog” — a good description of this effort to get the shareholders of J&J to waive their right to file shareholder lawsuits — permanently. Over the past two years, some senior officials at the Securities and Exchange Commission have indicated that they would be open to corporations foisting mandatory arbitration on…

Trump and Warren are Both Wrong

Jesse Fried says that Senator Warren and President Trump both want to weaken shareholder oversight, Senator Warren with her legislative proposal and President Trump in asking the SEC to review elimination of quarterly reporting: In the absence of any solid evidence that shareholders harm firms, the case for weakening investors has been based on myths,…

Main Street Investors Coalition Tries Desperately to Spin the New York Times Takedown as Support and Fails

Andrew Ross Sorkin’s New York Times Dealbook completely shreds the corporate-funded, lobbyist-led, climate change-denying “Main Street Investors Coalition” as a fake astroturf (artificial grassroots) group misrepresenting itself and its agenda. It’s rather hypocritical of them to call Sorkin’s piece “a hit job,” considering that it is merely a statement of facts about a group that…

We Strongly Oppose the Oxymoronic “CHOICE” Act

We join with the Council of Institutional Investors in strongly opposing the falsely named “CHOICE” Act, which would eliminate critical shareholder rights and market responses that ensure the integrity of our financial markets. The proposal would sharply reduce the number of shareholder proposals and shareholder oversight on ceo pay, restrict the ability of independent proxy…

Proxy Access Update: Sidley Austin

From Holly Gregory’s Sidley Corporate Governance Report: Through the collective efforts of large institutional investors, including public and private pension funds, and other shareholder proponents, shareholders are increasingly gaining the power to nominate a portion of the board without undertaking the expense of a proxy solicitation. By obtaining proxy access (the ability to include shareholder…

Senate Bill Would Limit Shareholder Rights – The New York Times

Jason N. Ader and Eric Jackson write about proposed legislation that would significantly impair the rights of shareholders. [T]wo Senate Democrats – Tammy Baldwin of Wisconsin and Jeff Merkley of Oregon – have introduced a bill that would restrict shareholder rights. The bill was co-sponsored by Senators Elizabeth Warren and Bernie Sanders. Would these same…