U.S. Chamber Urges Congress and the SEC to Oppose Special Interest Access

U.S. Chamber Urges Congress and the SEC to Oppose Special Interest Access

WASHINGTON, D.C.-The U.S. Chamber of Commerce today submitted a statement to the House Financial Services Committee for its hearing on the SEC's two competing shareholder access proposals. The Chamber stated that changes in proxy rules that results in the election of directors beholden to unions or other special interests would weaken the independence of corporate boards to the detriment of all shareholders.

"The Chamber believes that greater proxy access would not advance the financial interests of individual investors," said David Hirschmann, president of the U.S. Chamber Center for Capital Markets Competitiveness. "We urge the SEC and the members of Congress to oppose any plan that allows groups to use the proxy process to promote narrow interests that do not serve the long-term goals of a company or investors."

The SEC has issued two proposals as it reviews investor access to proxy statements. The first would reaffirm the Commission's view that companies may exclude shareholder proposals relating to director election procedures from their proxy. The second proposal would overturn the existing interpretation, permitting shareholders owning 5% of a company's stock to propose changes to a company's bylaws and allow shareholder director nominees to appear on the company proxy.

"In the wake of the Sarbanes-Oxley reforms and other recent corporate governance changes, boards of directors of public companies are more independent, more engaged, and highly responsive to the needs and interests of all shareholders," said Hirschmann. "In many cases, concerns raised under the current proxy process are addressed even before the question is put to shareholders for vote."

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.

The testimony can be viewed at:

http://www.uschamber.com/issues/testimony/2007/090727_secproxy.htm


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07-170