SEC Final Rule: Facilitating Rights Of Shareholders To Nominate Directors (Proxy Access Rule)
|Comment Deadline||Final Rule Issue||Effective Date|
|February 16, 2010||September 20, 2011||September 20, 2011 VACATED BY COURT ORDER|
On August 25, 2011, the SEC held an open meeting adopting final rules for the federal "proxy access" rule, or facilitating right of shareholders to nominate directors, under the Dodd-Frank Act. Among the topics at this meeting was the new Exchange Act Rule 14a-11, under which "companies are required, under certain circumstances, to include a shareholder nominee or nominees for director in company proxy materials."<ref>SEC Adopts New Measures to Facilitate Director Nominations by Shareholders. SEC. Retrieved on August 25, 2011.</ref>
- "Shareholders who otherwise are provided the opportunity to nominate directors at a shareholder meeting under applicable state or foreign law would be able to have their nominees included in the company proxy materials sent to all shareholders.
- Shareholders also have the ability to use the shareholder proposal process to establish procedures for the inclusion of shareholder director nominations in company proxy materials."
A three-year deferment will apply to those companies deemed "smaller reporting companies" under SEC rules.