Court Vacates SEC Proxy Access Rule: Opinion Strongly Criticizes SEC’s Analysis, Including Its Consideration of Costs and Benefits, the Impact of Special Interest Shareholders and the Burden on Investment Companies

Sullivan & Cromwell LLP - July 22, 2011

On July 22, 2011, the U.S. Court of Appeals for the D.C. Circuit vacated the proxy access rule adopted by the Securities and Exchange Commission in August 2010.  The SEC had stayed effectiveness of the proxy access and related rules pending the court’s review of a petition filed by the Business Roundtable and the U.S. Chamber of Commerce.