TheCorporateCounsel.net

On Friday, the Council of the Corporation Law Section of the Delaware State Bar Association posted a notice on the DSBA website stating:

The U.S. Securities and Exchange Commission recently proposed the repeal of Rule 14a-8 of the Securities Exchange Act of 1934. The Council of the Corporation Law Section of the Delaware State Bar Association is incorporating the potential repeal into its annual review of Delaware’s corporate statutes. From this review, the Council may formulate proposed statutory amendments. If approved by the Corporation Law Section and the Executive Committee of the DSBA, the proposed amendments are recommended to the Delaware General Assembly.

As I had mentioned earlier this week, if the SEC proceeds with its proposed rescission of Rule 14a-8, we will likely see some states consider the enactment of laws that could address shareholder proposals, either in a manner similar to Rule 14a-8 or through some other approach. It appears that the Council of the Corporation Law Section of the DSBA is trying to get out in front in light of the Commission’s proposed action.

– Dave Lynn