SEC Moving to Make It Easier for Large Shareholders to Put Directors on Bo

[Judi Lynn]

SEC Moving to Make It Easier for Large Shareholders to Put Directors on Boards
By Marcy Gordon The Associated Press
Published: Oct 8, 2003




WASHINGTON (AP) - Federal regulators are moving to make it easier for major shareholders to install directors on company boards over opposition from corporate CEOs who want to keep the status quo and big pension funds who say it doesn't go far enough.

The far-reaching proposal by the Securities and Exchange Commission is designed to make companies more accountable, prevent boards from acting as rubber stamps to executives' actions and thereby bolster investors' confidence rattled by last year's wave of corporate scandals.

SEC Chairman William Donaldson has endorsed the plan, but his two fellow Republicans have questioned the new rules as currently written.

The commissioners were voting Wednesday to open the proposed rules to public comment.
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http://ap.tbo.com/ap/breaking/MGASBLS0JLD.html