SEC Proposes Amendments to Proxy Solicitation and Shareholder Proposal Rules

SEC Proposes Amendments to Proxy Solicitation and Shareholder Proposal Rules

November 11, 2019, Covington Alert

On November 5, 2019, the Securities and Exchange Commission (SEC) proposed two rule amendments as part of its ongoing effort to modernize and improve the proxy voting system. The SEC proposed amendments to its rules governing proxy solicitations to clarify the application of such rules to proxy advisory firms making voting recommendations and to impose new disclosure and other obligations on such firms, with the goal of enhancing the accuracy, transparency and effectiveness of proxy voting advice.