Shareholders would have tougher time submitting resolutions under SEC’s proposed rule

The U.S. Securities and Exchange Commission formally proposed a new rule on Tuesday that could make it harder for shareholders to submit proposals dealing with social issues like executive pay and climate change.

The rule, now open to public comment, would hike the re-submission thresholds for shareholder resolutions, or recommendations that ordinary retail investors can make to a company’s board. The SEC voted 3-2 to officially propose the rule.

Two of the SEC’s commissioners, Allison Herren Lee and Robert Jackson Jr., dissented on the rule’s proposal, saying that they would limit accountability of corporate executives and suppress shareholder rights. Read Full Article - CNBC, November 5, 2019