Chairman Christopher Cox
Securities and Exchange Commission
100 F Street, NE
Washington, DC 20549-1090
September 28, 2007
Dear Chairman Cox:
How far is the pendulum going to swing during this particular period of history before the public pushes it back the other way? And pushes hard. Since shareholders are the owners of a corporation, and since they take the risk of ownership, they have the right speak to up about how a corporation is run. They have a right to not only express their opinion, they have, through shareholder resolutions, the right to effect changes in the policies and procedures at the companies in which they've invested. Without these rights, shareholders are, in effect, absentee owners--bringing to mind that very old saying: "When the cat's away, the mice will play."
That's why I'm writing to request that you protect the right of investors to file shareholder resolutions and urge you to take no action on the proposed initiatives that would curtail or eliminate this essential right.
Shareholder resolutions are an invaluable tool for investors who want to make their voices heard with regard to the direction of their companies. Shareholder resolutions have helped to promote transparency and improve corporate governance and performance. They have called attention to critical issues, including global warming, nuclear power, sweatshops, executive compensation, natural resource extraction, and other major societal and environmental problems that, when not addressed, often end up costing shareholders and their companies as a result of lawsuits, damaged reputations, consumer boycotts, public protests, and low staff morale.
The many corporate scandals of recent years highlight how important it is to have more, not less, corporate transparency and accountability. Shareholder resolutions have proven effective in holding companies accountable to their owners. I ask that the commission safeguard, not undermine, their use.
Thank you for your attention to my comments.
Sincerely,
Peter Fenstermacher