SEC proposes rule amendments related to shareholder nominations

By Lisa Kerner

Charlotte, N.C., June 11 - The Securities and Exchange Commission announced that it has proposed a series of rule amendments to facilitate the rights of shareholders to nominate directors on corporate boards.

Proposed Exchange Act Rule 14a-11 would permit certain shareholders to include their nominees for director in the company's proxy materials unless prohibited by state law or a company's governing documents, the SEC said.

The SEC said that under the proposed amendment to Exchange Act Rule 14a-8(i)(8), companies generally would not be permitted to exclude shareholder proposals that would amend a company's governing documents regarding nomination procedures, provided the proposal does not conflict with proposed Rule 14a-11.

The public can submit comments on the proposal at www.sec.gov/rules/proposed.shtml.

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