December 3, 2021

Volume XI, Number 337

Advertisement
Advertisement

December 02, 2021

Subscribe to Latest Legal News and Analysis

December 01, 2021

Subscribe to Latest Legal News and Analysis

November 30, 2021

Subscribe to Latest Legal News and Analysis
Advertisement

SEC Rule Change to Clear Path for Investors on Corporate Boards

The proxy rule changes coming into effect after the coming proxy season are thought to have the effect (possibly intended) of making it easier for activists to place their candidates on Boards of Directors.  It is thought that the activists will be helped by the stockholders receiving a single proxy for both the Company and the activist candidates.

"Universal ballots, which the SEC proposed in 2016 at the end of the Obama administration, can make it more likely a company will lose some board seats to dissidents, such as activist hedge funds, but less likely they will lose a majority of seats. While universal ballots have long been pushed by activists, they also have gained favor from investor advocates and some companies, which have argued the ballots could improve shareholder democracy."

©1994-2021 Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. All Rights Reserved.National Law Review, Volume XI, Number 327
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

About this Author

Joel I. Papernik, Securities Attorney, Mintz Levin, Israel Counsel, M&A Lawyer
Member

Joel is a corporate and mergers and acquisitions attorney who is esteemed for his work on life sciences deals. He leads acquisitions of public and private companies across a wide range of industries and assists all types of companies with the intricate processes of offloading enterprises, divisions, and subsidiaries. His capabilities include managing collaborative arrangements, licensing transactions, and other strategic deals for life sciences companies and helping overseas firms set up operations and make acquisitions in the United States. He also serves as counsel to boards of directors...

212-692-6774
Advertisement
Advertisement
Advertisement