SEC Statement on Proxy Access Litigation

On September 6, SEC Chairman Schapiro confirmed that the SEC is not seeking a rehearing or Supreme Court review of the decision by the U.S. Court of Appeals in Washington, D.C. vacating Rule 14a-11 which would have required companies to include shareholders’ director nominees in company proxy materials. The SEC had also previously adopted Rule 14a-8 which permitted eligible shareholders to require companies to include shareholder proposals for proxy access procedures in company proxy materials. The SEC stayed the effective date of Rule 14a-8 until the court’s decision on Rule 14a-11 is finalized, which is expected to be September 13. SEC Release.