In a move likely to be applauded by shareholder activists, the Securities and Exchange Commission has proposed amendments to the proxy rules that would require parties in a contested election to use universal proxy cards that would include the names of all board of director nominees. The proposal, approved on Oct. 26 by a 2-1 vote (with Commissioner Michael Piwowar dissenting), gives shareholders the ability to vote by proxy for their preferred combination of board candidates, similar to voting in person.
“The proposed changes would allow shareholders to vote by proxy in a manner that more closely replicates how they can vote in person at a shareholder meeting,” said SEC Chair Mary Jo White. “This change would allow shareholders through the proxy process to more fully exercise their vote for the director nominees they prefer.”
