The election of corporate directors should have improved disclosure and improved shareholder access to the nomination process, according to a report published by the SEC’s division of corporation finance.
Under the SEC proposals, the nomination committee of public companies ought to more fully disclose their practices, while candidates recommended by shareholders should also be considered. Communications between shareholders and company directors is another area requiring more transparency.
The SEC also suggests that large, or long-term shareholders, should have the ability to nominate directors where there is large-scale shareholder dissatisfaction over the proxy process at the company.
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