US regulator shelves reform on voting in board fights: Sources

The U.S. securities regulator has shelved a proposed Obama-era reform that would have given shareholders in companies more freedom to vote for their preferred candidates during contested board elections, people with direct knowledge of the matter told Reuters.

The proposal made by the Securities and Exchange Commission (SEC) two weeks before President Donald Trump’s election victory would have changed how shareholders vote during activist investor-led fights for board seats, an issue that has divided companies and investors for years.

SEC officials have said publicly in recent months that the proposed rule-change remains a priority, raising hopes among activist investors who have pushed for changes, including Pershing Square Capital Management’s William Ackman, that the SEC will finalize and implement the rule soon.

 

Source: CNBC

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