On Nov. 28, the U.S. Securities and Exchange Commission adopted an amendment to Rule 14a-8(i)(8) that effectively denies shareholders access to the director-nomination process. This amendment allows a company to omit from its proxy material any proposal that relates to a nomination or an election for membership on a company’s board of directors or a procedure for such nominations or elections.

According to Chairman Christopher Cox, the SEC’s action, taken by a vote of 3-1, maintains the status quo of the past decade and is necessary to provide clear guidelines to companies before the upcoming proxy season.