The Securities and Exchange Commission could resolve some of the proxy system’s issues by having fund boards make final decisions on certain matters without then holding a shareholder vote, reports BoardIQ in a June 18 piece titled “Boards Can Decide Some Proxy Issues Without Vote: ICI.” Asset management partner Elizabeth Reza is quoted in the piece, discussing how it would save funds money without increasing directors’ workload or exposing them to additional liability.
“I don’t think it would add to increased workload, because any of those items, the directors already would have had it on their plate if a proposed change was being considered,” Ms. Reza said. “If the SEC were to pass an exemptive rule that allows something to go forward without shareholder approval, it doesn’t change up the role for the directors that significantly.” She added that if a fund board believes a change is so significant that shareholders should be given a say, the board can still seek their approval even if it’s not required.
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