America’s SEC plans to toss out decades-old rules in a move that will give activist  investors significantly more power to determine who sits on corporate boards, reports the WSJ. The change centres on a rule that has allowed brokers since 1937 to vote on their clients’ behalf in director elections, and to typically vote in favour of standing managements and boards. The SEC could announce as early as next week that from January, brokers will not be able to vote clients’ shares.

This entry was posted by Gwen Robinson on Friday, April 24th, 2009 at 5:14 and is filed under Capital markets. Tagged with sec. Edit this entry.