SEC Adopts Mandatory Proxy Access

At an open hearing on August 25, 2010 the SEC, as expected, adopted amendments to its proxy rules providing for inclusion of shareholder nominees in company proxy statements. By contrast, current practice requires shareholders to pay for the preparation and mailing of proxy materials for their own nominees. The amendments were adopted by a vote of 3 to 2 along party lines, with Chairperson Schapiro and Commissioners Aguilar and Walter voting in favor, and Commissioners Casey and Paredes dissenting. They will become effective 60 days from publication in the Federal Register, which is expected shortly, thereby making proxy access available for most companies during the 2011 proxy season.