Shareholder Proposal Rule Amended By SEC

On September 23, 2020, the Securities and Exchange Commission adopted the amendments to its shareholder proposal rule, which governs the process for a shareholder to have a proposal included in the company's proxy statement for consideration by all shareholders. Typical shareholder proposals include recommendations that a company or its board of directors take specified actions. The amendments are designed to promote engagement between the company and the proponent, raise eligibility thresholds for shorter-term investors and further restrict repeat proposals garnering minimal support.

The amendments will apply to any proposal submitted for an annual or special meeting to be held on or after January 1, 2022 (although some shareholders may take advantage of a transition period, as explained below).