Archive | 2011

SEC’s Efforts at Further Regulation Dealt a Blow

25 Jul
By: Daniel W. Rumsey

Hope for Smaller Reporting Companies?

A federal appeals court last Friday struck down the SEC’s “proxy access rule”, which was designed to give significant shareholders access to corporate proxy statements, making it easier to oust corporate directors.  To qualify, shareholders must have owned at least 3% of a corporation’s stock – a high threshold for a Fortune 500 company, but a relatively easy threshold to overcome in the case of smaller reporting companies.  Had the court ruled in favor of the SEC, smaller reporting companies would have been burdened with yet another regulation that disproportionately impacts these companies, which are widely held out as providing the greatest hope our country has to create jobs in a stagnating economy.   Continue reading