“Shareholders have long held the right to nominate director candidates, but have had to use their own proxy documents, at a significant cost. Traditionally, activist hedge fund managers and corporate raiders have typically used their own proxy cards to nominate directors. The new rule is expected to open the door to director elections for institutional investors.
However, opponents of the new rules, including the U.S. Chamber of Commerce, contend that the changes will empower labor unions and environmentalist investor groups in behind-the-scenes conversations at the expense of shareholder value. Tom Quaadman, vice president at the U.S. Chamber of Commerce. argues the measure will also be costly and disruptive to companies.”
Get the details on MarketWatch: SEC approves rule giving shareholders new power. Rule empowers investors to nominate corporate directors starting in 2011.