Category: CA100+

As an eventful 2021 proxy season winds down, a lawsuit filed by investor groups this week against the US Securities and Exchange Commission (SEC) is already focused on next year - seeking to prevent the introduction of controversial Trump-era rules designed to make it harder for smaller investors to file resolutions.

The Interfaith Center on Corporate Responsibility (ICCR) has teamed up with shareholder advocacy group As You Sow and corporate governance specialist James McRitchie to lodge the challenge at the US District Court in Columbia. 

Under the new rules, which were introduced in September, the thresholds for the level of stock ownership needed to file proposals, and the level of support needed to resubmit them in subsequent years, increase substantially: for instance, shareholders with $2,000 of company shares could previously file a resolution, but under the new rule that minimum becomes $25,000.

The trio do not hold back in their …