SEC Eases Path for Companies to Nix Shareholder Proposals

The Securities and Exchange Commission released new guidelines making it easier for corporations to block votes on shareholder proposals at their annual meetings.

Under the new policy, regulators will determine whether a proposal affects at least 5% of a company’s total assets, net earnings or gross sales, according to an SEC legal bulletin released Wednesday. SEC rules allow companies to ask for “no-action” letters to exclude proposals on issues that aren’t economically relevant to their business.

Guidance issued during the early months of former Democratic SEC Chair Gary Gensler’s tenure made it harder for corporations to exclude shareholder proposals ...