SEC Approves Significant New Proxy Disclosure Requirements

Article by Marty Dunn , Shelly Heyduk , Rebekah Toton , Erin Jaskot and Leanna Albrecht

On December 16, 2009, the U.S. Securities and Exchange Commission approved substantial revisions to its proxy rules by a 4-1 vote. These new proxy disclosure requirements are intended to enhance the information provided to shareholders so they are better able to evaluate the leadership of public companies and will be effective for filings made on or after February 28, 2010. The Commission did not address the proposed amendments to the proxy solicitation rules that were included as part of the proposing release, but it is expected that they will be considered next year in connection with the proposed proxy access rules.