The US Securities and Exchange Commission won't be seeking to reverse a court ruling that threw out its shareholder access rule, which was designed to give shareholders the right – under some circumstances – to nominate directors. Chairman Mary Schapiro said she firmly believed the rule was in the best interest of investors and markets. "It is a process that helps make boards more accountable for the risks undertaken by the companies they manage. I remain committed to finding a way to make it easier for shareholders to nominate candidates to corporate boards," she said. "At the same time, I want to be sure that we carefully consider and learn from the Court's objections as we determine the best path forward."
SEC staff will, as a result, go back to the drawing board, and not for the first time. An attempt at a shareholder access rule in 2003 met a similar fate. When this one was proposed in 2009, one of the Republican commissioners, Kathleen Casey, who is now stepping down from the SEC, complained that it was the fourth attempt in six year to come up with a rule. Now there may be a fifth in nine years.
Source document: The SEC statement is a brief news release with some additional background on the issue.
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