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A recent shareholder proposal promises to substantially affect the director-nomination process in boardrooms across the United States. The 2nd U.S. Circuit Court of Appeals recently upheld the right of shareholders to include in a company’s proxy statement proposals that relate to procedures for elections of directors generally. Following this court decision, the SEC’s Division of Corporation Finance is reeling as it scrambles to amend the proxy rules affected by the decision in time for the 2007 proxy season.

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