Proxy Contests and Shareholder Slates

Earlier this year, Delaware adopted new legislation making it easier for shareholders to put forward nominees for a company's board of directors. The Securities and Exchange Commission (SEC) proposed similar changes to the federal proxy rules. Under the SEC proposals, shareholders holding 1% or more of companies with a global market value of at least $700 million could have the names of their board nominees included in the company’s proxy circular. Similar provisions would apply to shareholders holding at least 3% of midsized companies and 5% of smaller companies. The SEC delayed its vote from this November to early 2010 to wade through hundreds of comments received on both sides of the issue.

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