What is the SEC Planning Now?

The Chairman of the SEC recently announced, an all encompassing review
of the proxy process via a “Round Table Review.”

            Topics that may be considered include:

I.  The potential for over-voting and under-voting by broker dealers:

  • Retail Shareholder Participation (why retail shareholders voted 29% of their shares; vs. 91% voted by Institutional Investors).

  • Shareholder Proposal Process

  • Thresholds for minimum ownership.

II. Proxy Advisory firms:

  • Reliance on these Firms;

  • Opportunity to raise concerns by issuers if they disagree;

  • The transparency of the Proxy firm process;

  • Conflict of interest with related consulting services provided.

III. Technology Review:

  • Can it help make the proxy process more efficient?

  • A look at “Block Chain” and possible benefits. 

The SEC will welcome comments via its website, rule-comments@sec.gov., or by paper comments addressed to Bret J. Fields, Secretary, Securities  Exchange Commission, 100 F Street, NE, Washington, DC 20549-1090.

The outcome of the review will certainly be interesting.


Ref:  Statement Announcing SEC Staff Roundtable Review

         Chairman Jay Clayton, July 30, 2018