The Washington, D.C. Circuit Court of Appeals ruled that the Securities and Exchange Commission\u2019s (SEC) new proxy access rule 14a-11 is \u201carbitrary and capricious\u201d and thus invalidated the rule. The DC Circuit Courts decided in Business Roundtable v. SEC<\/em> that the SEC\u2019s rule had unsupported assertions and arguments.<\/p>\n The SEC proxy access rule states that public companies need to provide shareholders with information regarding shareholder-backed candidates when board of directors are going to be voted on. The Business Roundtable and U.S. Chamber of Commerce said this rule violates the Administrative Procedure Act and had not \u201c\u2026adequately considered the rule\u2019s effect upon efficiency, competition, and capital formation.\u201d<\/p>\n Lately the SEC has come under fire for not analyzing their new rules with data and economic analysis that demonstrates the trade-offs and consequences of the new procedures. Some accuse the SEC of \u201cback of the envelope\u201d analysis or picking and choosing what makes sense to them (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" The Washington, D.C. Circuit Court of Appeals ruled that the Securities and Exchange Commission\u2019s (SEC) new proxy access rule 14a-11 is \u201carbitrary and capricious\u201d and thus invalidated the rule. The DC Circuit Courts decided in Business Roundtable v. SEC that…<\/span><\/p>\n