SEC Approves Exclusion of Proxy Access Proposals at Five Companies

The Securities and Exchange Commission has approved several companies to exclude proposals for proxy-access from their ballots, which may set up a legal fight in the coming months, according to Financial Week.

In four separate no-action letters posted to its website yesterday, the commission chose not to act and let Bear Stearns, J.P. Morgan Chase, E-Trade Financial and Kellwood Company to exclude proposals by the American Federation of State, County and Municipal Employees. The proposals, if passed by shareholders, would have allowed them to amend company bylaws to include director nominations for company boards by any shareholders to who has held more than a 3-percent common stock for at least two years, according to FW.

The Commission has also allowed Croghan Bancshares to exclude a similar proposal by Samuel Danziger, an Ohio investor, according to FW. The proposal would have allowed director nominations by shareholders who hold more than 1 percent of common stock for at least a year.

The companies had all looked to exclude the proxy proposals from their ballots, saying that a new SEC rule restricted shareholders from proposing changes to bylaws for director nominations.