July 28, 2007
Dear Chairman Cox:
As a concerned investor, I was alarmed to learn that the SEC is considering a proposal to restrict or eliminate one of the most important tools that shareholders like myself can use to make our concerns known to corporate management. I urge you to drop the suggested proposal curtailing investors' right to file advisory resolutions under Rule 14a-8.
When I purchase shares of stock, I own a portion of that company. Management is supposed to work for me. Advisory resolutions enable me to communicate my concerns to management. Then if a majority of votes from all shareholders approves the resolution, management is obligated to implement the resolution. This mechanism helps assure that management works for the stockholders rather than only for their own limited self-interest.
I do not see how this proposal would benefit me as a shareholder. Just the opposite, restricting or eliminating advisory shareholder resolutions would be a disastrous step backwards. Please let me know what action you intend to take on this issue.