SEC votes to restrict director votes by broker-dealers

The Securities and Exchange Commission approved a proposal by a vote of 3-2 that allows broker-dealers to cast votes for corporate directors only when their clients tell them to. "Counting uninstructed broker votes is akin to stuffing the ballot box for management as broker votes almost always are cast in favor of management's candidates for board seats," said Ann Yerger, executive director of the Council of Institutional Investors.

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