Today the Committee on Capital Markets Regulation issued an updated statement regarding the conundrum of “unelected” directors. The Committee has conducted an empirical study of the frequency with which corporate directors resign or decline to stand for reelection after failing to obtain successful election results at annual shareholder meetings. This study expands on the Committee’s prior work on this issues, which was released in June 2014.
As a follow up to this study, the Committee also submitted a letter to the Securities and Exchange Commission recommending that the SEC implement regulations requiring a board of directors to disclose specifics reasons why a director who has failed to received a majority of votes should continue to serve on the board.
Click here to read the letter to the SEC.