US court rejects SEC rule on board nominees

[ShockediSay]

Source: AP/Yahoo Finance

WASHINGTON (AP) -- A federal appeals court has struck down a rule adopted last year by the Securities and Exchange Commission that gave shareholders more power to nominate board directors.

The U.S. Court of Appeals for the District of Columbia Circuit said the SEC was "arbitrary and capricious" in implementing the rule, which was widely supported by investor advocates. Judge Douglas Ginsburg said the SEC failed to estimate the cost to companies to campaign against investors' nominations.

The U.S. Chamber of Commerce and the Business Roundtable, a trade group of CEOs for the nation's largest companies, had challenged the rule, which was mandated under the financial overhaul passed by Congress last year....

Supporters of the rule said it was necessary because risky corporate behavior, particularly on Wall Street, was a leading cause of the 2008 financial crisis. Getting candidates on the board would give investors a better shot at influencing company policy.

Read more: http://finance.yahoo.com/news/US-court-rejects-SEC-rule-on-apf-1094113398.html;_ylt=ArdAmWAuqt.qb3k5OrDcOQK7YWsA;_ylu=X3oDMTE1N3Bsc2dnBHBvcwM1BHNlYwN0b3BTdG9yaWVzBHNsawN1c2NvdXJ0cmVqZWM-?x=0&sec=topStories&pos=2&asset=&ccode=

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Everybody knows that the dice are loaded
Everybody rolls with their fingers crossed
Everybody knows the war is over
Everybody knows the good guys lost
Everybody knows the fight is fixed
The poor stay poor
The rich get rich
That’s how it goes
Everybody knows

(Leonard Cohen)