On October 4, 2010, the Securities and Exchange Commission ordered a stay of the effectiveness of Rule 14a-11 and related proxy rule amendments, which would facilitate shareholder access to a company's proxy materials for the nomination of directors, pending review of a challenge to those rules by the United States Court of Appeals for the District of Columbia. The stay also applies to the amendment to Rule 14a-8, new Schedule 14N, new Rule 14a-18, and amendments to Rule 14a-2. These proxy access rules have been recently adopted by the SEC to give shareholders the ability to nominate directors outside of the normal process and are being challenged by the Business Roundtable and Chamber of Commerce of the United States of America. In light of the challenge, the SEC determined to exercise its discretion to stay the amendments in order to avoid "potentially unnecessary costs, regulatory uncertainty and disruption." It is expected that the issue will be quickly resolved since both the SEC and petitioners will seek expedited review. Click here for a copy of the SEC's order.