Today, the SEC granted a motion by the Business Roundtable and the U.S. Chamber of Commerce requesting a stay of the effectiveness of the recently adopted proxy access rules. The motion by the petitioners had requested that the SEC stay the effectiveness of Rule 14a-11 until the U.S. Court of Appeals for the D.C. Circuit resolved the groups related petition for review of the rule. The SEC’s order, however, not only grants the stay of Rule 14a-11, but because of the “potential for confusion if the amendment to Rule 14a-8 were to become effective while Rule 14a-11 is stayed,” it also stayed the effectiveness of the amendment to Rule 14a-8 as well.
The Business Roundtable, U.S. Chamber of Commerce and the SEC will now jointly seek expedited review of the petitioners' challenge of the rules.