President Barack Obama’s financial-market reforms announced Wednesday will be the starting point for new US systemic risk regulation and corporate governance rules, especially regarding shareholder rights, reports Global Proxy Watch.
The plan would give oversight duties to the Federal Reserve while keeping the SEC as the key regulator in the financial sector, while expanding international cooperation.
It is likely that Congress will toughen elements of the plan before it is enacted. Last week, Congressman Gary Peters proposed The Shareholder Empowerment Act, which includes the Shareholder Bill of Rights that New York Senator Charles Schumer proposed last month. Included in the Shareholder Bill of Rights would be requirements of a majority vote in uncontested director elections and a split in the chair and CEO posts. The SEC also proposed rules allowing shareholders to access corporate proxies.