SEC to Stop Refereeing Proxy Ballot Disputes During Shutdown

The SEC will be unable to advise companies on whether they can bar shareholder proposals from their annual meeting proxy ballots if the government closes next week, the agency said Wednesday.

Companies normally seek the Securities and Exchange Commission’s blessing if they wish to block a resolution from proxy voting materials that investors receive before annual meetings. The SEC can bring enforcement actions alleging companies wrongfully tossed proposals.

“We ask that companies and proponents work together to resolve questions to the best of their ability” during a shutdown, according to an SEC announcement.

• Visa Inc., Cisco Systems Inc., and WestRock Co., are among companies with pending requests for SEC guidance on their plans to scrap shareholder proposals, some of which involve environmental and social issues, according to the SEC’s website.
• The SEC is slated to stop most operations Oct. 1 if Congress fails to reach a deal to keep the government open before then.
• Up to 93% of the SEC’s 4,600 workers would be furloughed during a shutdown, SEC Chair Gary Gensler said Wednesday.