US court rejects SEC rule on board nominees
Legal News Center
A federal appeals court has struck down a rule adopted last year by the Securities and Exchange Commission that gave shareholders more power to nominate board directors.
The U.S. Court of Appeals for the District of Columbia Circuit said the SEC was "arbitrary and capricious" in implementing the rule, which was widely supported by investor advocates. Judge Douglas Ginsburg said the SEC failed to estimate the cost to companies to campaign against investors' nominations.
The U.S. Chamber of Commerce and the Business Roundtable, a trade group of CEOs for the nation's largest companies, had challenged the rule, which was mandated under the financial overhaul passed by Congress last year.
A spokesman for the SEC said the agency is reviewing the decision and considering its options.
Supporters of the rule said it was necessary because risky corporate behavior, particularly on Wall Street, was a leading cause of the 2008 financial crisis. Getting candidates on the board would give investors a better shot at influencing company policy.
The rule would have allowed investors owning at least 3 percent of a company's stock to put their nominees for board seats on the annual proxy ballot sent to all shareholders. Before the Securities and Exchange Commission acted on the rule, investors had to appeal to shareholders at their own expense.
Related listings
-
Mayor of NM town pleads guilty to gun smuggling
Legal News Center 07/14/2011The former mayor of a small New Mexico border town has pleaded guilty to charges he participated in a gun smuggling ring that federal prosecutors said sent hundreds of guns into Mexico, authorities said Wednesday. Eddie Espinoza faces 65 years in pri...
-
Montana Supreme Court hires new administrator
Legal News Center 07/13/2011The Montana Supreme Court has a hired a new court administrator for the state's judicial branch. The court named Beth McLaughlin, who had been the director of court services, as the replacement for Lois Menzies, who retired last month. In her new pos...
-
Feds eye CIA officer in prisoner death
Legal News Center 07/13/2011A CIA officer who oversaw the agency's interrogation program at the Abu Ghraib prison in Iraq and pushed for approval to use increasingly harsh tactics has come under scrutiny in a federal war crimes investigation involving the death of a prisoner, w...
New Rochelle, New York Personal Injury Lawyers
If you or a loved one has been injured in an accident, contact Kommer, Bave & Ollman, LLP, in New Rochelle, New York, immediately. We can answer all your questions and work with you to determine if you have the grounds for a personal injury lawsuit. The attorneys at our firm are determined to resolve even the most difficult of cases. We will work closely with you to determine the best course of action to get your claim or case resolved in the most efficient way possible. We will fight for your right to compensation! No one should have to suffer a financial burden from the result of another person’s carelessness. The attorneys at Kommer, Bave & Ollman, LLP will aggressively fight to ensure that justice is served on your behalf.