Washington - Business Roundtable CEO Joshua Bolten released the following statement in response to the Securities and Exchange Commission’s (SEC) staff legal bulletin providing information for companies and shareholders regarding Rule 14a-8 under the Securities Exchange Act of 1934:
“Business Roundtable applauds the SEC for taking an important initial step in strengthening the shareholder proposal process. By reinforcing key substantive exclusions and restoring a company-specific approach, the Commission’s guidance moves closer to the rule’s intended meaning, helping businesses and shareholders navigate the process more effectively.
“Significant reforms are still needed to address persistent challenges and abuses. The current framework too often enables a small subset of investors to advance proposals that are immaterial or unrelated to long-term shareholder value. We urge the SEC to undertake a formal rulemaking to modernize the shareholder proposal process in a way that enhances transparency, ensures proposals are relevant to a company’s business and protects the interests of all shareholders.”