Business Groups Gear Up To Fight SEC Proxy Access Proposal
Professor and former SEC Commissioner Joseph Grundfest spoke to NASDAQ.com about the proxy access proposal:
Key business groups are complaining that the U.S. Securities and Exchange Commission is rushing its controversial proxy proposal and may be overstepping its authority with the plan.
The 250-page proposed rule aims to make it easier for shareholders to nominate corporate board candidates. To implement new rules in time for the 2010 proxy season, the SEC would need to approve changes in the fall. The agency could act as early as Nov. 9.
Stanford Law School Professor Joseph Grundfest called the rule contradictory because it would not allow shareholders the right to install their own proxy access standards.
"Administrative agencies are wise not to contradict themselves when rulemaking," he wrote. "Contradictions invite courts to overturn agency action as arbitrary and capricious."