The following comment on Letter Type O,
Letter Type O:
Secretary Jonathan G. Katz
Dear Secretary Katz,
As a public employee, I am writing you to express my support for the adoption of SEC proposal S7-19-03 to allow shareholders to nominate candidates for election to corporate boards. Given the impact of corporate scandals upon the economy, jobs, and workers' pensions, I believe this action is needed and long overdue.
A common dominator at Enron, WorldCom, Tyco and other companies engulfed in scandal was a board of directors handpicked by management who could not be held accountable to shareholders.
Shareholders must be able to nominate directors at the earliest possible annual meeting, when the company is in crisis and shareholder value is immediately threatened such as in the Enron and WorldCom scandals.
Some companies and their boards of directors have lost sight of the fact that shareholders are the true owners of companies. The proposed rule in support of real director elections will go a long way in reinforcing this important principle.