NYS Comptroller DiNapoli and NYC Comptroller Levine Statement on SEC’s Plan to Silence Shareholders of Public Companies

What this means

A factual summary is pending editorial review. The complete official release is reproduced below with issuer attribution and a direct link to the original publication.

Official release

Source material from New York Office of the State Comptroller. The wording below is the issuer’s statement.

New York State Comptroller Thomas P. DiNapoli and New York City Comptroller Mark Levine today issued a joint statement opposing the Securities and Exchange Commission's proposal to rescind Rule 14a-8 and encouraging companies to support shareholders ability to file proposals. Since 1942, the rule has required publicly traded companies to include qualifying shareholder proposals in their proxy materials so that all investors can vote on them. Without it, companies could exclude shareholder proposals from the proxy ballot altogether, leaving investors to bear the cost of a separate proxy solicitation just to put a question before their fellow shareholders. Their statement:

“We are disappointed to see the SEC proposing to rescind Rule 14a-8.

“Any SEC action to rescind or fundamentally alter Rule 14a-8 will likely face lengthy legal challenges. We expect—as a matter of good corporate governance—that publicly traded American companies will continue accepting shareholder proposals for publication in their proxy for the 2027 season and adhering to the status quo during this period of regulatory uncertainty.

“The shareholder proposal process is a cornerstone of American corporate governance that has strengthened board oversight, improved risk management, and fostered productive dialogue between investors and companies for more than 80 years. Companies should not use the shield of regulatory uncertainty to undermine the important and constructive role investors play in making companies better.”

Release text attributed to New York Office of the State Comptroller. Consult the official publication for any subsequent corrections or updates.