Cox Pushing Forward on Vote for Shareholder Rights Proposals

Securities and Exchange Commission Chairman Christopher Cox reiterated yesterday that he will continue to move forward with plans to vote on whether or not shareholders would be able to have a voice in who serves on corporate boards of directors, according to Reuters.

The SEC continues to gather comments from the public on two competing proposals about how shareholders be able to propose candidates for boards, in order to help the Commission to decide which route to take. Striking up controversy, the proposals could potentially give labor unions more say in how companies are run. “We intend to complete work on a rule in time for the proxy season,” Cox told Reuters after giving a speech at Harvard University.

The decision to move forward has also raised eyebrows and concerns from such lawmakers as Congressman Barney Frank (D-MA), who recently said it would be unwise for the Commission to vote on the proposals with one vacant seat on the Commissioner panel, left by Democratic Commissioner Roel Campos who resigned last month. Additionally, Annette Nazareth, the only other Democratic commissioner, who has yet to chose a leave date.

“The need to eliminate ambiguity in our rule exists independent of that,” Cox told Reuters, adding that several more meetings will be held by the Commissioners before a final vote is made.