The U.S. Securities and Exchange Commission voted 3-2 yesterday to seek public comment on a proposal that would allow investors owning 1 percent of the biggest companies to nominate directors on proxy statements, according to Bloomberg.
Such action would give stockholders a tool to overhaul boards at banks blamed for fueling the financial crisis. The proposal would apply to companies with market values exceeding $700 million. Investors would have to own a larger proportion of shares to nominate directors at smaller companies.