In Focus
CII Urges SEC to Reverse New Stance on No-Action Process
CII sent a
letter December 30 to SEC Chair Paul Atkins urging the commission to reverse its
November 17 statement, which announced that this proxy season the SEC’s Division of Corporation Finance staff generally will not issue decisions on no-action requests filed by companies seeking to omit shareholder proposals. The statement “could diminish the use of an important shareholder right that for decades has led to improvements in corporate governance that benefit long-term shareholder value,” warns the letter. CII points out that over the past 50 years shareholder proposals have made important contributions to corporate governance and sound corporate governance is critical to long-term returns.