US court rejects SEC rule on board nominees
Legal News Center
A federal appeals court has struck down a rule adopted last year by the Securities and Exchange Commission that gave shareholders more power to nominate board directors.
The U.S. Court of Appeals for the District of Columbia Circuit said the SEC was "arbitrary and capricious" in implementing the rule, which was widely supported by investor advocates. Judge Douglas Ginsburg said the SEC failed to estimate the cost to companies to campaign against investors' nominations.
The U.S. Chamber of Commerce and the Business Roundtable, a trade group of CEOs for the nation's largest companies, had challenged the rule, which was mandated under the financial overhaul passed by Congress last year.
A spokesman for the SEC said the agency is reviewing the decision and considering its options.
Supporters of the rule said it was necessary because risky corporate behavior, particularly on Wall Street, was a leading cause of the 2008 financial crisis. Getting candidates on the board would give investors a better shot at influencing company policy.
The rule would have allowed investors owning at least 3 percent of a company's stock to put their nominees for board seats on the annual proxy ballot sent to all shareholders. Before the Securities and Exchange Commission acted on the rule, investors had to appeal to shareholders at their own expense.
Related listings
-
Mayor of NM town pleads guilty to gun smuggling
Legal News Center 07/14/2011The former mayor of a small New Mexico border town has pleaded guilty to charges he participated in a gun smuggling ring that federal prosecutors said sent hundreds of guns into Mexico, authorities said Wednesday. Eddie Espinoza faces 65 years in pri...
-
Montana Supreme Court hires new administrator
Legal News Center 07/13/2011The Montana Supreme Court has a hired a new court administrator for the state's judicial branch. The court named Beth McLaughlin, who had been the director of court services, as the replacement for Lois Menzies, who retired last month. In her new pos...
-
Feds eye CIA officer in prisoner death
Legal News Center 07/13/2011A CIA officer who oversaw the agency's interrogation program at the Abu Ghraib prison in Iraq and pushed for approval to use increasingly harsh tactics has come under scrutiny in a federal war crimes investigation involving the death of a prisoner, w...
Victorville CA DUI defense Attorneys
The outcome of a DUI defense will have a long-term effect on anyone’s life, making the decision to receive legal representation an easy one. The fact is, most people accused of a DUI are first offenders with no criminal background. Whether this is your first run in with the law or you have had previous convictions, you are in need of a DUI defense attorney.
The charges you are facing for a DUI range from fines, a 12-month suspension on your license and worst-case scenario, prison time. Your attorney will be able to analyze your situation to decide the best way to go about your case.
Our attorneys know the tricky ways to challenge all of the DUI tests and know how to claim improper collection of evidence. We will be able to negotiate on your behalf and free you from charges and help you keep your drivers license. The DUI process can last up to several months, we can make this process easier on you. .