August 30, 2007
Dear Chairman Cox:
As a person who has participated in shareholder campaigns to hold corporations accountable for their actions, I am alarmed that the SEC has issued rules that could curtail or eliminate the ability of shareholders like myself to raise important issues with corporate management. I urge you to not curtail investors' rights to file advisory resolutions under Rule 14a-8.
Advisory resolutions play a vital role in encouraging corporations to be responsive to their owners. They help to promote improved corporate governance, greater accountability, and more meaningful disclosure. Because of fiduciary responsibility, only shareholders have the ability to tell corporate boards that they want corporations to spend more to improve products, increase wages and salaries, and increase accountability to the public and to organizations acting on behalf of the greater environment. Only shareholders can tell corporate boards, through shareholder resolutions, that corporate officers are raiding the coffers through excessive salaries or compromising the corporation's ability to survive through short-term schemes to improve profit that impair longer-term survival and profitability.
Any actions that would restrict or eliminate advisory shareholder resolutions would be a disastrous step backwards. Please let me know what action you intend to take on this issue.