TELECOM Digest OnLine - Sorted: SEC Proposes Internet 'E-Proxy' Posts

SEC Proposes Internet 'E-Proxy' Posts

Reuters News Wire (reuters@telecom-digest.org)
Tue, 29 Nov 2005 12:38:59 -0600

U.S.-listed corporations would be allowed to post proxy statements on
Web sites instead of sending the bulky annual documents through the
mail, under a plan proposed on Tuesday by federal regulators.

The U.S. Securities and Exchange Commission voted 5-0 to put the plan
out for a 60-day public comment period, with a final vote by the
commission expected to follow later.

Aimed at saving postage and printing costs, the so-called "e-proxy"
measure is also seen as a way to possibly cut the costs to
shareholders of mounting proxy contests and giving them more power to
challenge corporate managers.

"Studies show that today 75 percent of Americans now have access to
the Internet and this percentage is rising steadily ... The percentage
of investors with Internet access is even higher," said SEC Chairman
Christopher Cox at a meeting.

Under the proposed rule, investors would still have to get written
notice in the mail that a proxy statement was available online. In
addition, investors wishing to continue receiving printed proxy
statements could ask for them.

The SEC requires corporations to issue a range of disclosures and
documents to the agency and investors, including annual and quarterly
reports and proxies.

Proxy statements contain information about matters to be decided by
shareholder votes, such as director nominations and resolutions, as
well as disclosures of senior executive pay. They are distributed
before annual shareholder meetings.

The present system of mailing out proxies is costly, but past efforts
to reform it have been stymied by concerns that on-line distribution
could exclude off-line investors.

Copyright 2005 Reuters Limited.

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