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ARTICLE · 25 JULY 2007

SEC Makes E-Proxy Posting Mandatory

The Securities and Exchange Commission adopted amendments to its proxy rules to require public companies and other soliciting persons to furnish proxy materials to shareholders using the Internet.

United StatesCorporate/Commercial Law
The Securities and Exchange Commission adopted amendments to its proxy rules to require public companies and other soliciting persons to furnish proxy materials to shareholders using the Internet. All large accelerated filers except mutual funds must comply beginning January 1, 2008. All other companies and other soliciting persons, including mutual funds, must comply beginning January 1, 2009.

The e-proxy rules are intended to decrease the cost of proxy solicitations and make it more cost-effective for persons other than the company to undertake their own solicitations. Under rules adopted in December 2006, companies will first be permitted to make e-proxy solicitations beginning July 1, 2007, but are not required to do so. Many commentators and some of the SEC's Commissioners had hoped the SEC would delay making e-proxy solicitation mandatory until the voluntary system had been tried and proven successful.

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