On October 4, 2010, the Securities and Exchange Commission (SEC) granted a stay of its proxy access rules pending resolution of the petition that Business Roundtable and the Chamber of Commerce of the United States of America filed with the U.S. Court of Appeals for the District of Columbia Circuit seeking review of the such rules. These rules had been scheduled to become effective on November 15, 2010. The stay of effectiveness covers the amendment to Rule 14a-8, in addition to new Rule 14a-11.

Business Roundtable and the Chamber of Commerce filed their petition with the court on September 29, 2010,1 and at the same time petitioned the SEC to stay the effectiveness of the rules until the court resolves the case. Business Roundtable and the Chamber of Commerce represented that if the SEC granted the stay they would join in a motion seeking expedited review of their petition in the Court of Appeals.

For additional information about the proxy access rules, see our Legal Update dated September 7, 2010, titled “U.S. SEC Adopts Proxy Access Rules.”