NYSE Limiting Broker Discretion for Governance Proposals
The New York Stock Exchange announced new restrictions in the application of its Rule 452 regarding brokers’ ability to vote uninstructed customer shares.
Under Rule 452, the NYSE will no longer permit brokers to vote customer shares, without specific customer instructions, on the following governance proposals:
- Destaggering a company’s board of directors;
- Majority voting in the election of directors;
- Eliminating supermajority voting requirements;
- Providing for the use of consents;
- Providing the right to call a special meeting; and
- Certain types of anti-takeover provision overrides.
- Barbara Blackford
