February 10, 2011

Shareholder Proposals: KBR Suit Alleges Chevedden’s Assault & Battery

I’m not pulling your leg on this one. A physical altercation between John Chevedden and a process server has led KBR to file this brief (and these exhibits) as part of its lawsuit to exclude a shareholder proposal submitted by Chevedden due to his alleged lack of eligibility (I also recently blogged about how other companies are challenging Chevedden’s eligibility).

The brief provides detailed allegations about how Chevedden has gone to great lengths to avoid being served – and how Chevedden knocked down a process server when she finally caught up with him outside a UPS store. The process server swore out a police report, which is pending before the City Attorney’s office. We continue to post pleadings filed in this case in our “Shareholder Proposals” Practice Area.

House Financial Services Committee: “Oversight” = “Micromanagement”

Last week, the House Financial Services released a draft version of its Oversight Plan for this Congressional session. Rather than focus on oversight of what caused the recent financial crisis – including enforcement of existing laws and tackling why there has been a dearth of cases brought in the subprime area, etc. – it looks like the Committee intends to spend its time micromanaging the implementation of Dodd-Frank (even though Congress hasn’t given the SEC the resources to do so). In addition, it looks like the Committee will be micromanaging the FASB and the standards it creates. So much for the independence of these two regulators.

The Treasury Department has announced the launch of a ‘beta’ Consumer Financial Protection Bureau website,, with the initial focus on soliciting ideas on the Bureau’s creation and priorities and for answering questions on its work.

More on our “Proxy Season Blog”

With the proxy season in full swing, we are posting new items regularly on our “Proxy Season Blog” for members. Members can sign up to get that blog pushed out to them via email whenever there is a new entry by simply inputting their email address on the left side of that blog. Here are some of the latest entries:

– The Latest SEC Comment Letter Trends
– Proxy Access: It Has Been Done Before
– Broadridge to SEC: Mandate Use of Social Media
– Challenges Continue with XBRL Compliance
– The Quality of the Shareholder Vote in Canada

A Call for Nominations: Regulatory Innovation

With all that has transpired in the past year, it seems that now more than ever we need some innovative approaches to financial regulation. Therefore, Dave is pleased to be a part of Morrison & Foerster’s establishment of the 2011 Regulatory Innovation Award through the Burton Foundation. This award will honor an academic or non-elected public official whose innovative ideas have made a significant contribution to the discourse on regulatory reform in the arena of corporate governance, securities, capital markets or financial institutions. If you know of someone meeting these qualifications who should be considered for this award, please submit the nomination before February 18th.

– Broc Romanek