CEOs sue to water down shareholder rights

[brentspeak]

http://finance.fortune.cnn.com/2010/09/29/ceos-sue-to-w... /

Posted by Colin Barr
September 29, 2010 3:58 pm

The Chamber of Commerce and the Business Roundtable, the lobbying groups representing many of America's biggest companies, sued the Securities and Exchange Commission Wednesday to overturn a rule that ends management's exclusive lock on nominating corporate directors.

The rule, known as proxy access and adopted last month, allows major long-term shareholders to nominate directors to a big company's board without organizing a costly and time-consuming proxy contest.

snip

The Council for Institutional Investors, which represents pension funds that have $3 trillion invested, said it will oppose the suit seeking to have proxy access overturned. It called the proxy access rules a key tool for investors dissatisfied with a board's performance.

"The Council fought long and hard for U.S. shareowners to gain the right to have their board candidates considered alongside those of management," said Ann Yerger, the Council's executive director. "Proxy access will make companies more responsive to their shareowners and more vigilant in their oversight of companies. This basic right is widely accepted in many other countries and the Council will fight to preserve it here."

[habitual]

1. God forbid the people who actually OWN the company

should have more say as to who gets nominated to the board than the management of the company.

[RagAss]

2. Just don't water down my Scotch.