SEC Moves to Rollback Shareholder Vote Oversight
By Dean Seal
The Securities and Exchange Commission has moved forward with an effort to upend the process used by shareholders to communicate with management and influence a company's direction.
The securities regulator on Wednesday proposed rescinding the rule that requires public companies to include eligible shareholders proposals in their proxy statements and voting ballots for shareholder meetings.
The agency argues that it lacks the authority from Congress to dictate when matters should go before shareholders for a vote, and that investor proposals should be handled under state corporate law.
"There is no better time for the Commission to recognize the limits of its authority, relative to state law, for regulating shareholder proposals," SEC Chair Paul Atkins said in a statement.
The move has been widely criticized by shareholder rights advocates as a means of shifting power away from investors and giving public companies more control.
"The SEC is catering to a small minority of companies that would rather avoid addressing their own shareholders' concerns than protect the investors whose capital powers our markets," Tejal Patel of SOC Investment Group said.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
September 16, 2026 17:52 ET (21:52 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar.
Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees.
Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement.
Popular
3 Stocks to Sell and 3 Stocks to Buy for November
3 of the Best Dividend Stocks to Own
The 10 Best Companies to Invest in Now
These Overvalued Stocks Have Plenty of Room to Fall
United States