SEC Moves to Shift Shareholder Rules to States
The SEC is considering eliminating federal requirements for shareholder proposals at public companies and returning regulatory power to individual states. The proposed shift could limit activist influence and spark legal challenges from investors.
The United States Securities and Exchange Commission moved on Friday afternoon to rescind its Rule 14a-8, potentially shifting shareholder proposal regulations to individual states. The regulatory shift would diminish the influence of investor activists who routinely target public companies over carbon emissions and governance. Activists warn the change will create a fragmented regulatory landscape and restrict small investor speech.
