SEC Proposes Amendments To The Shareholder Proposal Regime

Late last year, the Securities and Exchange Commission announced a number of proposed amendments intended to "modernize" rules governing the inclusion of shareholder proposals in a company's proxy statements. The period for public comment has now ended. The proposed amendments, if implemented, would result in a more stringent shareholder proposal regime in the US and would make Canadian shareholder proposal rules comparatively more shareholder-friendly.

Key Takeaways

• The SEC has recommended a number of amendments that would heighten requirements for shareholders to submit proposals. The proposed amendments would raise eligibility requirements, revise the "one-proposal limit" to clarify that a single person may not submit more than one shareholder proposal at the same meeting, and increase shareholder proposal resubmission thresholds for future shareholder meetings.