SEC Reverses on Health Proposals

The Securities and Exchange Commission is requiring many companies to put shareholder proposals related to universal health care on the proxy ballot, where in the past it had allowed them to omit the proposals, according to a report in The New York Times.

Over the last few months, the SEC has insisted that such companies as Boeing, General Motors, United Technologies, and Wendy's International include the proposals in their proxy materials. The proposals, which are generally raised by religious groups and unions, ask companies to adopt "principles for comprehensive health care reform," like those created by the Institute of Medicine, an arm of the National Academy of the Sciences.

So far, General Electric and Medco Health Solutions have adopted principles that include the goal of universal health care. Boeing, Reynolds American, among others, have opposed the shareholder initiative. Wal-Mart and IBM have negotiated with shareholders in an attempt to come to an agreement.

The SEC has not indicated why it has reversed course on the matter. According to the NYT, the commission has said, over the years, that it has reversed its position on certain issues to reflect "changing societal views."

Companies, on the other hand, argue that health care principles are not a proper company matter for shareholders to vote on. Under the SEC rules, companies do not have to put to a vote issues which "relate to a company's ordinary business operations." The commission said that it was appropriate for shareholders to vote on issues related to "significant social policy issues."