SEC steps back role in shareholder proposals and proxies (CFO Dive)

The SEC has issued an anticipated proposal to revoke Rule 14a-8 governing public companies’ federal requirements on when to include shareholder proposals and their use in proxy materials. In its statement, the SEC is directing companies and their shareholders to rely on what is permitted by their individual state legislation. The SEC also proposed several other proxy-related rule amendments, including removing the requirement for companies to deliver an annual report to shareholders and eliminating the deadline for when company documents must be added by reference in a proxy statement. Under the new proposed rules, the effort and burden related to shareholder proposals would be shifted to investors. The consensus appears to be that the changes are a win for companies and their boards, but expect to have only a minimum impact on activist investors who typically rely on their own processes. See CFO Dive (free subscription), “SEC moves to roll back shareholder proxy proposal rules”