Thursday, August 5, 2010

US SEC to open up proxy access, says report

WASHINGTON: The US Securities and Exchange Commission (SEC) is expected to pass a proxy access rule that would give large shareholders the right to directly nominate directors on corporate ballots alongside the company's choices, with the cost being borne by the company, the Wall Street Journal said.

Currently, if shareholders want to propose a slate of directors, they need to pay for the cost themselves.

The regulator is expected to pass the rule 3 to 2, with the two Republican commissioners dissenting, the paper reported, citing people familiar with the matter.

A meeting is scheduled for Aug 25.

Under the new rule, shareholders would have to own a 3% stake in a company for at least two years to qualify for the right to nominate directors, the paper said, adding that people familiar with the matter cautioned that final details may change as negotiations continue. ' Reuters

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