The SEC intends to adopt changes to the federal proxy rules to facilitate the effective exercise of shareholders' traditional state law rights to nominate and elect directors to company boards of directors. Upon implementation, the new rules are expected to require, under certain circumstances, a company's proxy materials to provide shareholders with information about, and the ability to vote for, a shareholder's, or group of shareholders', nominees for director. The SEC indicated that it believes these rules will benefit shareholders by improving corporate suffrage, the disclosure provided in connection with corporate proxy solicitations, and communication between shareholders in the proxy process. The new rules would apply only where, among other things, relevant state or foreign law does not prohibit shareholders from nominating directors. Upon adoption, the new rules are expected to require that specified disclosures be made concerning nominating shareholders or groups and their nominees. In addition, the new rules provide that companies will be required to include in their proxy materials, under certain circumstances, shareholder proposals that seek to establish a procedure in the company's governing documents for the inclusion of one or more shareholder director nominees in the company's proxy materials. 75 FR 56667