ACTION ALERT: SEC TESTS RULES THAT WOULD UNDERMINE SHAREHOLDERS’ RIGHT TO SPONSOR RESOLUTIONS

The Securities and Exchange Commission (SEC) has submitted suggestions for comment pertaining to the right of shareholders to file resolutions. As you will see in this Research and Advocacy Brief, the SEC’s suggestions would either eliminate or cripple our ability to foster positive corporate change through the resolution process. A copy of the 100 page proposal it is available at www.sec.gov/rules/proposed/2007/34-56160.pdf. Just 10 of those pages address shareholder proposals (beginning page 50), but their content is alarming.

We have summarized three major points of concern in the Brief. If you would like to act on this urgent matter, the model letter could be personalized with minimal effort. Comments should be emailed to the SEC at rules-comments@sec.gov with “File Number S7-16-07” in the subject line. You also may want to consider contacting your congressional representatives to provide additional support.

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