Press Release
National Center for Public Policy Research Free Enterprise Project (FEP)
The Securities and Exchange Commission’s decision to abandon federal oversight of shareholder proposals is a short-sighted move that could ultimately strengthen the hand of corporate management and leave free-enterprise investors with fewer avenues to challenge the growing influence of left-wing shareholder activists, say shareholder activists with the National Center for Public Policy Research’s Free Enterprise Project (FEP).
The SEC voted Wednesday to propose rescinding Rule 14a-8, which governs when public companies must include qualifying shareholder proposals in their proxy materials, shifting the issue largely to state corporate law.
“The allegedly ‘free market’ commissioners at the SEC have proposed to lock in left-wing shareholder activist gains and leave pro-free enterprise shareholder activists to the tender mercies of corporate management-loving state laws,” said FEP Executive Director Steve Milloy.
