Sec Steps Back from No-Action Reviews, Leaving Proxy Season on Unstable Ground

Ryan Adams was quoted in Governance Intelligence's article, "SEC steps back from no-action reviews, leaving proxy season on unstable ground." Ryan called the SEC’s new approach to shareholder proposal exclusions “one of the most consequential” changes to the no-action process.

He noted that while “companies might welcome more flexibility to exclude proposals without staff sign-off,” the shift “also introduce[s] litigation risk.”

According to Adams, “in the past, we’ve seen most companies actually hesitant to proceed with excluding proposals without approval of the SEC staff,” meaning the change “could result in more proposals going to a vote.” His comments highlight a landscape where corporate discretion expands, but so too do uncertainty and legal exposure.

Read the full article.