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19 August 2010 By Robert Cyran Follow @rob_cyran

The SEC plans to vote next week on giving investors an easier way to challenge corporate boards. Longterm holders with a big enough slug of stock would be able to nominate directors on the company’s dime. But instead of sparking battles, it may just help shareholders get heard.

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The Securities and Exchange Commission will meet on Aug. 25 to vote on a rule change that would make it easier for shareholders to nominate their own candidates to the board.

Under the original proposal, shareholders owning a 1 percent stake in big companies, 3 percent in mediumsize ones and 5 percent in small firms would be allowed to place their candidates on the company's proxy card. After receiving public comments, the SEC altered the plan and is expected to consider an acrosstheboard threshold in which shareholders would have to own a 3 percent stake in a company for at least two years.

Dissidents must prepare and distribute their own materials to investors under current rules.

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