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Open Access. Powered by Scholars. Published by Universities.®

2009

Corporate governance

Securities Law

Maurer School of Law: Indiana University

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Full-Text Articles in Law

The Future Of Shareholder Democracy, Lisa M. Fairfax Oct 2009

The Future Of Shareholder Democracy, Lisa M. Fairfax

Indiana Law Journal

In 2007, the Securities and Exchange Commission (SEC) considered, and ultimately rejected, a rule that would have required corporations to include shareholder-nominated candidates on the ballot. This Article seeks to ascertain the impact of this rejection. On the one hand, the SEC's rejection appears to be a stunning blow to the shareholders' rights campaign. This is because many shareholders' rights advocates have long considered access to the corporate ballot as the "holy grail" of their campaign for increased shareholder power. Such advocates believe that access to the corporate ballot is critical to ensuring that shareholders can participate legitimately in the …