Issues Raised by New Proxy Access Proposals by SEC and Senate Bill

Extensive discussion at an SEC open meeting, as well as the SEC’s press release, provide important details about the SEC’s new proxy access proposal. In parallel, a recent Senate bill would also mandate proxy access. The SEC and Senate proposals would grant shareholders of U.S. public companies considerably broader rights of access than under the SEC’s 2003 proxy access proposal and may well become effective in time for the 2010 proxy season. This memorandum provides an overview of the currently known terms of the new proposals and some of the important issues they raise.