Threats to Shareholder Rights and SEC rule 14a-8

“For over 75 years, the shareholder proposal process has served as a cost effective way for corporate management and boards to gain a better understanding of shareholder priorities and concerns, particularly those of longer-term shareholders concerned about the impact of environmental, social, and governance issues on the long-term value of the companies that they own. We see this unjustified action by the SEC as part of a broader move across this Administration to realign the regulatory landscape in favor of corporate interests at the expense of the public interest.”

Josh Zinner, CEO of the Interfaith Center on Corporate Responsibility.

News: Proposed SEC Rules to Restrict Proxy Access Break Faith with Investors (November 5, 2019) - See ICCR's Press Release here

Read reactions and responses here

 Updates and News:

Efforts are being taken to curtail shareholder rights by changing the rules of the proxy process to make the filing of resolutions more onerous for investors. The SEC has recently proposed changes to the rules to stifle the voice of shareholders. Industry groups like the National Association of Manufacturers' funded "Main Street Investor Coalition," the Chamber of Commerce and the BRT are spreading misinformation about the proposal process.

In response, ICCR has joined together with CERES, the Council of Institutional Investors, US SIF, PRI, and other stakeholders to defend shareholder rights.

Together, we are pressing key decision makers to preserve Rule 14a-8 in its present form, as the most effective and efficient means for shareholders to communicate with boards of directors, corporate management, and their fellow shareholders.


Further Reading