A key committee of the American Bar Association finally released its much-anticipated recommendations on majority election of corporate directors last week, but disappointed corporate governance experts say the measures fell well short of expectations.
The ABA’s Committee on Corporate Laws had been mulling possible amendments to the Model Business Corporation Act since last year, specifically eyeing the idea that directors should win a majority of shareholder votes to sit on a company’s board. Instead, however, the committee endorsed continuing the policy of plurality voting as the default rule for approving directors.
