Comments Supporting Proxy Access Due August 17th

Yes, the Commission voted on June 10 along party lines, three to two, to propose rule amendments aimed at giving shareholders the right to nominate directors to corporate boards. This is a symbolic equivalent to the Magna Carta, which barrons forced the English King to sign, limiting his powers by law and protecting their privileges. However, it will make it difficult for the SEC to proceed if submitted comments are mostly opposed. The Business Roundtable is orchestrating a flood of opposing comments from their CEO membership and other corporate officers. Here's the basics on submitting comments:

- The proposed rule is open for public comment until Monday, Aug. 17, 2009.
- A press release describing the 250 page rule can be found at http://sec.gov/news/press/2009/2009-116.htm
- The full text of the proposed rule can be found at: http://www.sec.gov/rules/proposed/2009/33-9046.pdf.
- Previously submitted comments are posted to the SEC's website at http://www.sec.gov/comments/s7-10-09/s71009.shtml
- Submit comments via e-mail to rule-comments@sec.gov. Be sure to put File No. S7-10-09 in the subject line.
- Alternatively, you can submit comments via the SEC's web form. On this webpage, you will be asked to fill in a form with you or your organization's information. You can either type your comments in the box provided or type "Comments attached." Click on continue and then upload your letter.

I'll be signing onto a letter from the United States Proxy Exchange (USPE), endorsed by members of the Investor Suffrage Movement and may also send an individual addendum. Here's a link to the current draft, still in progress. If you would like to sign on as well, send a small pdf of your signature and your signature block (Name, Title, Organization (if applicable), Address, including zip code) to Glyn Holton at mailto:mail@glynholton.com. If you don't have a pdf of your signature, send him a picture of your signature from your cell phone by Friday noon (Boston time), August 14, 2009.

For additional information and to see my recommendations on a few of the key points, go to http://www.corpgov.net/news/news.html#ProxyAccess.

The Commission proposed giving shareowners access to the proxy to nominate directors in 1942 but sloppy language and World War II got in the way. Each proposal since then has been defeated by entrenched boards and management who don't want to lose power. Don't let this opportunity for a real shift in power to pass us by. As Monks and Minow have noted, with the slight exaggeration suitable for book covers, "Corporations determine far more than any other institution the air we breathe, the quality of the water we drink, even where we live. Yet they are not accountable to anyone." Isn't it time they were at least accountable to shareowners?