What the new filings indicate
An OMB posting on Monday disclosed that the SEC forwarded its plan last week to repeal the federal regime governing shareholder proxy proposals. A separate OMB update published the same day notes the SEC also delivered another proposal addressing proxy solicitation practices.
An SEC spokesperson said the agency aims to "return the role of regulating shareholder proposals to the States," adding that "since his time as a commissioner, Chairman Atkins has highlighted concerns that the SEC's Rule 14a-8 on shareholder proposals exceeds the commission's authority and infringes upon state laws." The spokesperson said the solicitation proposal would update the process "to reflect advancement in technology and current realities of shareholder communications."
Why the SEC is pursuing this shift
The move represents the latest element of Chairman Paul Atkins' effort to reset how public companies and their investors interact. He has frequently condemned the current proxy framework for enabling what he calls "the tyranny of the minority," with particular criticism of proposals seeking changes to companies' environmental or social practices.
Law firm Freshfields' analysis of the 2025 proxy season reported that social topics made up 43% of the proposals examined. In a July address at a corporate governance conference, Atkins urged states competing to be the preferred venue for corporate domestication to revise their corporate codes to prohibit "the politicization of shareholder meetings."
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What comes next
Once the White House finishes its review and sends the item back, the SEC's three-member body will hold a vote on the proposal and then release it for public comment. The agency typically allows 60 days for feedback, which it may incorporate into a final rule. The commission must sign off on any final rule prior to it taking effect.
