• SEC Eliminates Broker Discretionary Votes in Director Elections
  • December 14, 2009
  • Law Firm: Harter Secrest & Emery LLP - Rochester Office
  • In July, the Securities and Exchange Commission (the "SEC") approved amendments to New York Stock Exchange ("NYSE") Rule 452 and the corresponding section of the Listed Company Manual to eliminate broker discretionary voting in all director elections, whether contested or not. The new rule applies to all elections of directors at shareholder meetings held on or after January 1, 2010. Because Rule 452 applies to brokers, it will impact not only issuers listed on the NYSE, but also issuers listed on other exchanges such as NASDAQ.