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SEC Nixes Proxy Access

Larry Ribstein:

The SEC voted to amend its shareholder proposal rule to let directors block a proposal that relates to a “nomination” to the board as well as one that relates to an “election.”

No, this is not the end of Christmas. As Dealbreaker reports:

[M]ost of what you need to know about the proxy access proposals can be found by looking at its biggest proponents: labor unions and union dominated pension funds. The funds and unions favor proxy access rights not because they have an altruistic urge to help shareholders in general or out of a metaphysical attachment to democracy. They supported it because they believed it would give them a leg up in negotiations with management and corporate boards. Ordinary shareholders can breath a little easier that this attempted power grab has failed.

Good. Damn good.