The chairman of the U.S. Securities and Exchange Commission (SEC) said on Thursday that the regulator will consider stricter rules for submitting shareholder proposals at annual meetings, including the ownership and resubmission threshold, Reuters reported. Jay Clayton, outlining the regulator’s agenda for 2019, said that the SEC would also consider subjecting proxy advisory firms to stricter requirements for transparency and conflict-of-interest disclosure. Last month, Reuters reported that the SEC was poised to consider changes to the rules that allow company shareholders to advance special resolutions on charged issues like climate change and gun violence. Industry groups say the rules allow special interests and proxy advisory firms that recommend how investors should vote to hijack corporate boardrooms with costly demands. The move could set up the SEC for a clash with investors, who worry any rule changes would diminish their ability to hold company management accountable.
