SEC proposes scrapping federal shareholder proposal rule
The federal rule may go.
The SEC proposed rescinding Rule 14a-8, which lets eligible shareholders place proposals in a company's proxy materials. State law and company governing documents would take its place.
The proposal would also widen companies' discretionary voting authority for proposals omitted from their proxy statements. Shareholders could block that authority for their own shares.
A companion proposal would end required delivery of annual reports to security holders, remove notices for exempt solicitations and cut the minimum broker search period to five business days from 20. Comments on both are due 60 days after Federal Register publication.
The document: SEC proposed rule, Release No. 34-106383, September 16, 2026.
