SEC Reopens Comment Period On Universal Proxy Card Proposal

The SEC reopened the comment period on a 2016 proposed rule that would require the use of universal proxy cards in all non-exempt solicitations for contested director elections.

In the discussion section on the comment period reopening, the SEC cited "important developments in proxy contests, corporate governance, and shareholder activism." The SEC noted that there has been (i) increased use of virtual shareholder meetings and adoption of proxy access bylaws, and (ii) significant developments in corporate governance matters affecting funds (citing, in particular, governance matters impacting registered closed-end funds and business development companies).

As previously covered, the 2016 proposed amendments would, among other things: