Interfaith Center on Corporate Responsibility and the Social Investment Forum launched a website, saveshareholderrights.org, in a campaign to protest proposed SEC rule changes that the groups say could severely limit the ability of investors to file shareholder resolutions and help nominate directors of corporate boards. The groups urge shareholders to send comments to the SEC and Congress.
One of the two competing SEC proposals would allow shareholders that have held a 5% stake for at least a year to nominate directors. The other rule would allow corporations to exclude shareholder nomination proposals from the proxy. The SEC is also considering increasing resubmission thresholds on resolutions that have failed in previous years. According to the two groups, the changes would effectively kill the shareholder resolution process. The comment period for the proposed rule changes ends Oct. 2.
At a teleconference Aug. 29, Laura Berry, executive director of ICCR, said the rule changes were a solution to a non-existent problem.