The Securities and Exchange Commission proposed rescinding Rule 14a-8, the federal rule that provides a process for eligible shareholders to place proposals in company proxy materials.
The commission said it believes the rule exceeds its statutory authority and has created unintended consequences, including potential displacement of state corporate law. Under the proposal, shareholder-proposal rights would depend more heavily on state law and company governing documents.
The proposal is not final. It will go through a public-comment process before the commission decides whether to adopt, modify or withdraw the changes.