Appeals Court Rejects Proxy Access Regs

Court sides with businesses' argument that SEC failed to consider cost to companies.

A U.S. Securities and Exchange Commission rule making it easier for shareholders to oust board members was rejected by a federal appeals court.

The U.S. Court of Appeals in Washington today agreed with the U.S. Chamber of Commerce and the Business Roundtable that the SEC failed to study the cost to companies of fighting a challenge from shareholders and connect those costs to “efficiency, competition, and capital formation.”

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