The US Securities and Exchange Commission (SEC) voted 3-2 to pass a final rule requiring shareholders to hold US$25,000 of stock for a year, up from US$2,000 currently, in order to submit proposals, reports the Wall Street Journal
(24 September, Kiernan). That threshold will fall to US$15,000 after two years of ownership and to US$2,000 after three years, setting a sliding scale that gives priority to longer-term shareholders. The new rule also raised the percentage of votes that proposals must receive to be resubmitted — and prohibits multiple shareholders who don’t individually meet the minimum thresholds from joining together to submit a proposal. Critics of the move said it will stymie Wall Street’s growing focus on environmental, social, and governance (ESG) issues, which are the subject of most shareholder proposals. Democratic Commissioners Allison Herren Lee and Caroline Crenshaw voted against the rule, saying it will make the vast majority of small investors ineligible to submit proposals, especially if they want to keep a diversified portfolio.
From "SEC Raises Bar for Shareholder Resolutions"
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