Regulator doesn't bark

3 December 2007 By John Christy

SEC chairman Christopher Cox says the commission’s recent ruling on proxy access upholds the status quo, giving regulators time to work on a better solution next year. The decision is a blow to shareholder rights, but not a fatal one. There is still room for a compromise.

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Meeting on November 28, the Securities and Exchange Commission upheld current rules on shareholder access to proxy ballots.
The SEC's four commissioners voted 31 to allow public companies to prevent investors from putting forth their own candidates for corporate directors on proxy voting ballots or proposals to change a company's bylaws.

Commissioner Annette Nazareth, was the sole dissenter. Nazareth said in a statement that the ruling "stands in the way of shareholders'
rights to elect directors".

Several institutional investors and one workers union are challenging the ruling. The American Federation of State, County and Municipal Employees is seeking to give shareholders of JPMorgan Chase and Bear Stearns a vote on new procedures for electing directors. The New Jersey Division of Investments and the North Carolina treasurer's office have made similar requests.

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Commissioner Annette Nazareth, was the sole dissenter. Nazareth said in a statement that the ruling "stands in the way of shareholders'
rights to elect directors".

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