SEC’s Schapiro moots changes to shareholder voting systems
US SECURITIES regulators yesterday weighed whether to change voting in corporate elections, amid calls from companies and some investors to fix a system they consider antiquated.
The Securities and Exchange Commission (SEC) asked the public to comment on changes to the voting system, including whether companies need more information about the identity of their shareholders.
There are more than 13,000 meetings a year where shareholders can vote in person, via the internet or by phone, or by mailing in a proxy form.
But much has changed since the last time the SEC reviewed shareholder voting, including advances in technology, changes in proxy distribution services and stock ownership.
“To result in effective governance, the transmission of this communication must be and must be perceived to be timely, accurate, unbiased, and fair,” SEC chairman Mary Schapiro said at a public agency meeting.
The SEC issued a discussion paper to examine the accuracy and transparency of the voting process, shareholder participation and the relationship between voting power and economic interest. The agency is exploring whether rules are needed for proxy advisory firms and how to get more shareholders to participate in the governance of their firms.