SEC Allows Internet Delivery of Proxy Materials; Proposes Mandatory Internet Delivery of Proxy Material by 2009
By Investment Management Practice Group
The SEC has adopted amendments to the proxy rules under the Securities Exchange Act of 1934 to allow issuers and other soliciting persons to deliver proxy materials to shareholders via the Internet. The new rules provide an alternative to the traditional printing and mailing of proxy materials and are designed to significantly reduce proxy costs for issuers and other soliciting persons. The rules apply to all proxy solicitations except those relating to business combinations and may be relied upon beginning July 1, 2007. In addition, the SEC has proposed that Internet delivery of Proxy Materials be made mandatory by 2009.