NYSE Proposes Amendment to Broker Discretionary Voting Rule

March 18, 2009
A proposed amendment to NYSE Rule 452 would eliminate broker discretionary voting in director elections. If approved by the SEC, the amendment likely would increase the cost of uncontested elections and would make it more difficult for issuers, especially those issuers with a smaller proportion of institutional investors, to establish quorums at shareholder meetings.

This update takes a look at the proposed amendment and discusses the significant impact it would have on the director election process.