SEC Approves Two Alternative Proposals Relating To Shareholder Access

At an open meeting on July 25, 2007, the Securities and Exchange Commission (SEC) approved two releases proposing alternative amendments to Exchange Act Rule 14a-8, which governs the ability of companies to exclude shareholder proposals from company proxy materials. One proposal (the "long release") would amend Rule 14a-8 to enable shareholders to include director nomination bylaw proposals in the company proxy materials, subject to the following conditions:

• the proposed bylaw change would be binding on the company if approved (i.e., precatory proposals would not qualify);
• the shareholder proponent has held more than 5% of the company’s securities for at least one year; and
• the shareholder proponent has filed a Schedule 13G disclosing all required information.