The Securities and Exchange Commission (SEC) in a 3-2 vote on
Wednesday, September 23, 2020, adopted amendments1 to the eligibility
requirements for submitting shareholder proposals to be included in
a public company issuer's proxy statement pursuant to Rule
14a-8 under the Securities Exchange Act of 1934, as amended, to
increase the ownership and holding period thresholds for proposal
submissions and previous support level requirements for resubmitted
proposals.
New Three-Tiered Eligibility Requirements
Under the current version of Rule 14a-8(b), to be eligible to
submit a proposal, a shareholder must have continuously held at
least $2,000 in market value, or one percent of the issuer's
securities entitled to vote on the proposal, for at least one year
by the date of submission of the proposal.
