Regulatory Alerts2020-11-04 | 2020-21580Added
Procedural Requirements and Resubmission Thresholds Under Exchange Act Rule 14a-8
The Securities and Exchange Commission adopted final amendments to Rule 14a-8 to modernize the shareholder-proposal process by establishing tiered ownership thresholds requiring shareholders to hold securities for one to three years. The rule imposes a one-proposal limit per meeting, mandates documentation for proposals submitted on behalf of others, and requires proponents to identify specific times for engagement with the company. Additionally, the amendments significantly raise the resubmission thresholds for failed proposals from 3, 6, and 10 percent to 5, 15, and 25 percent of shareholder support.
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