Every year, the U.S. Securities and Exchange Commission (SEC) settles disputes between companies and shareholders as to whether an investor proposal really belongs on the corporate ballot. But after the lengthy government shutdown, companies—and shareholders—are wondering if they will get responses in time for annual meetings.
Companies that want to exclude a shareholder proposal usually have to seek approval from the SEC each December and January. In a typical year, the process keeps 15 to 20 percent of proposals from a shareholder vote.
The SEC, though, hasn't posted any responses to the requests since Dec. 19. There were at least 42 requests pending at that time, and there's no way to know how many have been submitted since. Now companies are running out of time: It usually takes at least a month to resolve a contested proposal, then another 40 to 60 days to get proxy ballots printed and sent to investors.
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