Chamber Supports SEC Action to Curb Abuse of Proxy Process

WASHINGTON, D.C.-The United States Chamber of Commerce today applauded action by the U.S. Securities and Exchange Commission (SEC) that clarifies its longstanding interpretation of proxy access rules and prevents special interest groups from abusing the proxy process. The Chamber also called on the Commission not to reopen the issue in 2008.

"Increased certainty and clarity on proxy access will help companies and investors understand the rules of the road," said David Hirschmann, president and CEO of the U.S. Chamber Center for Capital Markets Competitiveness. "Clear guidelines will also ensure that SEC decisions are not made in piecemeal fashion, inviting litigation and potentially hurting investors and retirees."

The SEC voted on the shorter of its two proposals released earlier this year as part of its review of shareholder access to proxy statements. The proposal, which the Chamber supports, reaffirms the Commission's long-held view that companies may exclude shareholder proposals relating to director election procedures from their proxy.

"Today's boards are highly responsive to shareholder interests and concerns," said Hirschmann. "The Chamber urges the SEC not do anything that would jeopardize board independence and their ability to represent all shareholders."

The Chamber believes that greater proxy access would not advance the financial interests of individual investors or retirees. Instead, it would allow labor unions and other special interest groups to advance their agendas at the expense of these investors.

The Chamber will oppose any future efforts to give special interest shareholders leverage to advance their agendas at the expense of average investors.

The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

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