Power to the Shareholders

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According to a new report from the Wall Street Journal, shareholders have won a victory in obtaining greater clout to place directors on corporate boards.  This is part of the the “shareholder rights” movement that has been chipping away the power from top executives in U.S. run corporations. However, the Journal also predicts skirmishes ahead by public companies that hope to strike down the SEC rule, which they say will be used to distract management and advance special-interest agendas.

Questions:

1. What was the SEC vote in favor of the “proxy access” rule?

2. What does the “proxy access” rule require?

3. What are the costs and benefits of this new rule?

4.  How could this new rule impact you as an accountant?

Source:

Holzer, Jessica and D. Berman. (2010). Investors Gain New Clout, The Wall Street Journal, August 26. (Retrievable online at http://online.wsj.com/article/SB10001424052748703632304575451572616571774.html?mod=ITP_pageone_0)