Investors Sue to Invalidate Rule 14a-8 Amendments
The Interfaith Center on Corporate Responsibility, James McRitchie and As You Sow have sued the SEC to invalidate the most recent amendments to Rule 14a-8 which permits small shareholders to submit proposals to public companies for inclusion in proxy statements.
According to the complaint, the SEC’s purported justifications for the amendments were flawed at every turn. The plaintiffs allege the SEC recognized that it had a legal obligation to provide an economic analysis of the costs and benefits of the proposed rule, but it made no serious attempt to do so.
The complaint was filed in the United States District Court for the District of Columbia.
Contact Steve Quinlivan for more information.