Maybe the SEC should run federal elections
Democrats Urge SEC Chief to Adopt Ballot Access Rule
By Carrie Johnson
Washington Post Staff Writer
Tuesday, June 29, 2004; Page E01
Key Democratic lawmakers are urging the Securities and Exchange Commission to adopt a controversial rule that would help dissatisfied investors more easily nominate board members at public companies.
Citing financial scandals at Enron Corp., WorldCom Inc. and HealthSouth Corp., the legislators recently told SEC Chairman William H. Donaldson there is "no better time" to "bring democracy to the boardroom." Their letter was dated June 24 but it was not released publicly until yesterday.
The issue of shareholders' access to the ballot is the most intensely fought item on the SEC's agenda this year. The Business Roundtable and the U.S. Chamber of Commerce oppose changes to the way board members are selected, arguing that special interests could "hijack" the process. But shareholder rights groups, including labor-backed pension funds, are pushing for an alternative to the expensive and often futile proxy battles that investors currently must mount to bring change to corporate boardrooms.
