Mutual funds may soon feel proxy pressure; SEC plan would boost shareholders' clout.(News)

Investment News, October, 2003

Byline: Sara Hansard Flying under the radar screen of operating companies, mutual funds may come under greater pressure to get more involved in proxy nominations of company directors under a proposal issued last week by the Securities and Exchange Commission. But investor activists complain that unless the thresholds set for shareholder nominations are lowered for mutual funds, the proposed rules will have little impact on fund shareholders' ability to nominate fund company directors.

In a unanimous action, the five-member commission approved issuing a proposal that, in limited circumstances, would give shareholders of operating companies and mutual funds greater ability to nominate directors through company proxies. "Board...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.