General Electric Co. must allow shareholders to vote on aproposal that would limit the terms of two of its longest-servingboard members, the Securities and Exchange Commission hasruled.
That plan would bar independent directors elected from 1998 to2013 from running again after serving 15 years, according tocorrespondence with the SEC in which GE sought to block the vote.Former Avon Products Inc. Chief Executive Officer Andrea Jung andYoung & Rubicam Inc. ex-CEO Ann Fudge would be the first tofeel its effects, GE said.
“The proposal is a thinly veiled attempt to question thecompetence and business judgment of Ms. Jung and Ms. Fudge, and toremove them from the board” in violation of SEC rules, RonaldMueller, an attorney for Fairfield, Connecticut-based GE at GibsonDunn & Crutcher LLP, wrote in a letter to regulators.
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