The SEC issued a concept release seeking public comment on the U.S. proxy system and asking whether rule revisions should be considered to promote greater efficiency and transparency. The U.S. proxy system governs the way in which investors vote their shares in a public company regardless of whether they attend shareholder meetings.
The SEC noted that it has been nearly 30 years since it last conducted a comprehensive review of the proxy voting infrastructure. With significant changes since then in shareholder demographics, technology, and other areas, the SEC's review of the U.S. proxy system will examine emerging issues that either did not exist or were not considered significant three decades ago.
The SEC's concept release focuses on the accuracy and transparency of the voting process, the manner in which shareholders and corporations communicate, and the relationship between voting power and economic interest.
There will be a 90-day public comment period for the concept release after it is published in the Federal Register.
Click here to access the release seeking comments.