SEC chairman Jay Clayton
The power of the shareholder to hold accountable the companies in which they invest is under threat in the US.
On Tuesday, the SEC’s commissioners voted three-to-two in favour of a 179-page book of proposals to revise its rules around shareholder resolutions.
The SEC maintains that the new proposals will make the shareholder resolution process more efficient.
“Today’s proposed amendments follow from the staff’s extensive experience with shareholder proposals and recognize the significant changes that have taken place in our markets in the decades since these regulatory requirements were last revised, including, in particular, the types and use of communications, the types and frequency of shareholder-company engagement and the substantial shift to investing through mutual funds and ETFs, rather than directly by Main Street investors,” says SEC chairman Jay Clayton.
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