It is never a good sign when a senator, no matter what party affiliation, decides to involve himself in the governance arrangements of our leading public companies. Yet here we are, with Senator Sherrod Brown introducing a joint resolution under the Congress Review Act seeking to void the Securities and Exchange Commission’s (SEC’s) new rule on shareholder proposals. If this filibuster-proof resolution is approved by both the Senate and the House and signed by the president, then the rule shall immediately have no force or effect and the SEC would also be prevented from putting into place a similar rule in the future. If so, this will support the continuation of a trend that shifts corporate decision-making away from the board of directors and management and to uninformed shareholders, leading to a loss in productivity and shareholder value.
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