U.S. SEC Adopts Universal Proxy Card Rules

On November 17, 2021, the U.S. Securities and Exchange Commission (the SEC) adopted amendments to the proxy rules to require (and implement) the use of a universal proxy card in proxy contests for most SEC-registered companies.¹ The new rules do not apply to registered investment companies and business development companies. The SEC indicates in the Adopting Release that these changes, which were originally proposed in 2016, are intended to "enhance the ability of shareholders to elect directors though the proxy process in a manner consistent with their ability to vote in person at a shareholder meeting." The amended rules will be effective for shareholder meetings held after August 31, 2022.