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SEC's proxy amendment allows firms to electronically distribute; Internet-based delivery could become mandatory.(Finance)

Crain's Cleveland Business, January, 2007

Byline: MAYA PAYNE SMART A new Securities and Exchange Commission amendment allowing the electronic distribution of annual reports and proxy materials could save area companies hundreds of thousands of dollars. It also gives companies a reason to reassess the purpose and presentation of annual reports.

The amendment, known as the e-proxy rule, was passed by the SEC on Dec. 13. It allows companies that send out a notice of Internet availability to post annual reports, board election materials and other shareholder voting information online instead of distributing it via postal mail. Shareholders may still request that they receive printed proxy materials, but companies can make online distribution the default delivery mode beginning July 1. The SEC plans to...

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