The Securities and Exchange Commission (SEC) announced on Wednesday that it is reviewing the way shareholders vote and released "a document raising questions about the corporate proxy system." The SEC will also ask for public comment about the proxy voting process, its transparency and accuracy, and whether actions by investors can influence voting results.
The National Investor Relations Institute also came forward on Wednesday to support the review of the system. Revisions to SEC rules would promote greater efficiency and transparency, the organization said, and will "enhance the accuracy and integrity of the shareholder vote."
The SEC hasn't undertaken a comprehensive review of the system in 30 years and will be seeking public comment on the document, called a concept release, for 90 days.
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