Divided SEC Approves NYSE Amendment to Eliminate Discretionary Broker Voting in Uncontested Director Elections


On July 1, 2009, the Securities and Exchange Commission (the “SEC”), in a vote divided along party lines, approved an amendment to New York Stock Exchange Rule 452 that will eliminate discretionary voting by brokers in uncontested director elections.[1] Effective January 1, 2010, a broker will no longer be permitted to vote on behalf of a shareholder in any uncontested election for directors, unless the broker receives timely voting instructions from the shareholder.[2]

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