U.S. SEC plans to repeal current rules on shareholder proxy proposals for listed companies, submitted to White House for review

PANews reported on August 31, according to Bloomberg, that the U.S. Securities and Exchange Commission (SEC) is planning to repeal the current rules concerning proxy proposals submitted by shareholders of listed companies. The relevant proposal has reportedly been submitted to the White House Office of Management and Budget (OMB) for review, marking the latest step toward formally advancing the regulatory adjustment.

This move is part of SEC Chairman Paul Atkins' effort to adjust the relationship between listed company shareholders and management. The current rules allow eligible shareholders to submit proxy proposals to listed companies and seek to have the relevant motions included in votes at the companies' shareholder meetings. If the relevant rules are ultimately repealed, the ways in which listed company shareholders participate in corporate governance, put forward proposals, and influence management decisions may undergo major changes, and the competitive landscape between activist investors and listed companies may also shift. The plan is still in the regulatory review stage, and the final rules and specific implementation methods have not yet been determined.