Security Holder Director Nominations
[Release Nos. 34-48626; IC-26206; File No. S7-19-03]
The following information on Letter Type CC,
Letter Type CC:
William Donaldson SEC Chairman,
US Securities and Exchange Commission
Dear William Donaldson:
As an individual investor and shareholder we need more democracy to access the public company proxy process. The SEC has proposed reform that gives shareholders more control over the companies they own. This rule is important shareholders should have more control over the companies that they own. Do not cave into corporate lobby interests.
The SEC proposed rule two-step process for gaining access to the proxy statements is a good rule. The rule as presented would first, allow shareholders representing one percent of company stock to be able call for a shareholder vote on whether they can nominate directors. Then, if a majority of shareholders agree, the next year the shareholder group could nominate up to three directors, depending on the size of the board. Alternately, if at least 35 percent of shareholders withhold votes for one or more directors, investors would be allowed to nominate directors.
Since one of the common strains of almost all scandal-ridden companies is that boards of directors are not accountable to shareholders, but rather controlled by friends and cronies of management, it would make sense to give shareholders more control over the companies that they own. But because the business community is lobbying furiously to avoid even this small step toward shareholder democracy, this reform has remained stalled for more than a year now!
Please pass this proposed corporate governance reform act. This rule is important. Shareholders should have more control over the companies that they own.