EuropeanIssuers’ comments on the SEC Concept release paper on the U.S. proxy system
27 October 2010
EuropeanIssuers refered to the U.S. proxy voting system identified in the SEC release: accuracy, transparency, and efficiency of the voting process; communications and shareholder participation; relationship between voting power and economic interest in connection with proxy advisory firms.
EuropeanIssuers welcomes the SEC Concept release paper concerning the US proxy system and states that:
- given the cross-border nature of shareholdings, the Market Standards on General Meetings should be taken into consideration when analysing the U.S. system;
- the issue of over-voting should be considered in a broader context: there should be no stock lending without the shareholder’s explicit consent and there should be complete transparency towards all concerned parties, including the issuer;
- a unique identification code for the account of each beneficial owner or vote decision-maker should be set up internationally;
- there is support for the removal of the OBO/NOBO distinction;
- there are potential conflicts of interests of proxy advisers and concerns for their operating conditions.
Position paper
© EuropeanIssuers
