SEC's Stance On No-Action Letters Raises Uncertainty

Parker Schweich, a shareholder in Stradling’s Corporate and Securities practice group and a member of the firm's Mergers & Acquisitions practice group, was quoted in an article published by Law360, “SEC’s Stance On No-Action Letters Raises Uncertainty.” This particular policy change requires companies that want to exclude a shareholder proposal from their proxy materials to turn to the SEC for permission and express the reasons for omitting the proposal. The SEC’s policy that it may respond orally to no-action requests from companies is creating confusion with many arguing it could hurt shareholders and others predicting a lack of precedent to guide companies. Parker Schweich stated, “From a practical perspective, that new process of oral response could result in a dearth of published no-action precedents on which companies in the future can rely.”
Read the full article here.