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Article: Divided SEC Approves NYSE Amendment To Eliminate Discretionary Broker Voting In Uncontested Director Elections.(Securities and Exchange Commission)(New York Stock Exchange)
- Article from:
- Mondaq Business Briefing
- Article date:
- July 13, 2009
CopyrightCOPYRIGHT 2009 Mondaq Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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On July 1, 2009, the Securities and Exchange Commission (the "SEC"), in a vote divided along party lines, approved an amendment to New York Stock Exchange Rule 452 that will eliminate discretionary voting by brokers in uncontested director elections.1 Effective January 1, 2010, a broker will no longer be permitted to vote on behalf of a shareholder in any uncontested election for directors, unless the broker receives timely voting instructions from the shareholder.2
Background Under the federal proxy rules, brokers holding shares on behalf of shareholders are required to submit corporate proxy materials to such beneficial owners in advance of a company's ...