SEC Adopts Amendments to Rule 14a-8: More Stringent Requirements for Shareholder Proposals Will First Apply to 2022 Proxy Season

On September 23, 2020, the Securities and Exchange Commission voted, 3 to 2, to adopt amendments to Rule 14a-8 of the Securities Exchange Act of 1934, as amended, which will impose more stringent requirements on the initial stock ownership eligibility threshold, as well as the resubmission thresholds. The amendments will not affect the upcoming 2021 proxy season. But for the 2022 season, as we explain, they will make significant changes to the shareholder-proposal process. Continue reading for analysis on these amendments and practical tips for public companies going forward.

View this Governance & Securities Alert.