Companies, Investors Pan SEC’s Shareholder Proposal Process

Companies, investors, and other players in corporate governance generally were unhappy with SEC efforts to referee disputes over which shareholder proposals face votes at annual meetings, a new survey shows.

The Securities and Exchange Commission earned a middling grade, or worse, from a majority of those with investor resolution experience, according to a University of Delaware study released Wednesday. Only 6% of the more than 150 investors, company representatives, and others who weighed in on the SEC’s shareholder proposal administration gave the agency a perfect five-star rating.

The SEC had long advised companies seeking direction on whether they could exclude ...