Senate Banking Committee Chairman Chris Dodd, D-Conn., and eight other Senate Democrats today sent a letter to Securities and Exchange Commission Chairman Christopher Cox urging him not to adopt either of the two proposals that the SEC is considering regarding shareholder participation in electing corporate boards.
Both proposals would limit the ability of shareholders to participate in that process, a press release issued by the Banking Committee said.
“Shareholders are the owners of a public company and have a right to meaningfully participate in electing directors without incurring an undue cost of a separate proxy solicitation,” said the letter to Mr. Cox.
The letter recommended that the SEC maintain current rules, which allow shareholders to propose procedures to elect directors.
“On this and other matters of great significance we feel the commission should proceed only after it has a full complement of commissioners,” the letter said.
Commissioner Annette Nazareth, a Democrat, is leaving the commission, which will result in only three Republican members left on the body.