SEC Steps Away from Shareholder Proposal Review, Creating Uncertainty for Proxy Season

Ryan Adams shared his observation about the SEC’s decision to stop reviewing no-action requests on shareholder proposal exclusions with Pensions & Investments. Investor groups criticized the move as weakening shareholder rights, while some in the business community welcomed reduced oversight.

Ryan noted, “companies will have to determine whether they are comfortable excluding proposals without staff concurrence, and there’s some litigation risk that comes along with that.”

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