SEC Concept Release Solicits Comment on Proxy Voting System

July 21, 2010
The Securities and Exchange Commission recently published a concept release to solicit comments on the proxy voting system, which indicates that even if the SEC decides to focus on this release and the pending proxy access rules simultaneously, new rules will not be adopted until next year. This update examines the issues companies should consider regarding the release, such as the accuracy, transparency, and efficiency of the voting process, communications and shareholder participation, and the relationship between voting power and economic interest.