Dodd-Frank Rules May Be At Legal Risk

Court's rejection of proxy access suggests other SEC regs could face challenges.

Some of the U.S. Securities and Exchange Commission’s Dodd-Frank rules may face legal challenges after a federal appeals court ruling rejected an agency regulation on shareholder rights, analysts said.

The SEC rule written last year was meant to open company boards to candidates pushed by major shareholders. The U.S. Court of Appeals in Washington yesterday agreed with business groups that the rule shouldn’t be implemented because the regulator didn’t properly explore the costs of the change.

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