The Securities and Exchange Commission should look at ways to make it easier for shareholders to nominate corporate directors as it amends corporate proxy-access rules, SEC Commissioner Annette L. Nazareth said Wednesday.
"I'm quite certain that all the commissioners are interested in having effective shareholder democracy," Nazareth told reporters after giving a speech in Arlington, Va. "The question is: What is the mechanism to have effective shareholder democracy?"
A federal appeals court last week forced the SEC to reconsider whether shareholders should have more power to recommend board candidates. The agency will consider revised rules, which its staff has just begun writing, at a public meeting Oct. 18.
Under current SEC rules, the only way shareholders can challenge a company's selection of board members is to propose a separate slate of candidates and mail out a second proxy ballot. Proxy statements identify directors and proposals that shareholders will vote on at annual meetings.