Federal appeals court sides with the business groups’ lawyers and strikes Down SEC Proxy Access Rule

Very late last week, a federal appeals court in Washington struck down a U.S. Securities and Exchange Commission rule that would have made it easier for shareholders of publicly traded companies to nominate corporate directors.

You can read the full opinion here in PDF: Business Roundtable v. SEC (No. 10-1305)

This relates to Delaware via theDodd-Frank Wall Street Reform and Consumer Protection Act (PDF) and how that bit of federal legislation interacts with legislative changes enacted here back in 2009. In an nutshell, Delaware already addressed the issue at the State level, and the Dodd-Frank legislation attempted to throw the issue to the SEC in a ‘one size fits all’ world view.

The ruling is a setback for the SEC and Washington legislators, but it isn’t dead in the water yet. We’ll have to keep this one on the radar…

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