Responding to concerns voiced by shareholder activists and others, the Securities and Exchange Commission has approved a rule change by the New York Stock Exchange that eliminates broker discretionary voting in uncontested elections for directors. This is expected to strengthen the hand of institutional shareholders, especially at companies that have adopted a majority vote requirement for electing directors, and it may also make it more difficult for a company with a substantial retail shareholder base to achieve a quorum for the annual meeting. The change applies generally to shareholder meetings beginning in 2010. Public companies – especially smaller ones – need to plan ahead for their next annual meeting to ensure that they can achieve their goals
