Business Roundtable Files Lawsuit Against SEC for Proxy Rule Rescission

Washington – Business Roundtable today filed a lawsuit, with co-plaintiffs the U.S. Chamber of Commerce and the Tennessee Chamber of Commerce & Industry, against the Securities and Exchange Commission (SEC) for rescinding key components of its 2020 rule on proxy voting advice.

Upon filing, Business Roundtable CEO Joshua Bolten said:

“The agency’s important 2020 reforms were the result of a decade-long, thoughtful process to make proxy voting advice significantly more transparent, accurate and effective. The SEC’s decision to roll back these reforms—before they went into effect and without justification—harms investors, companies and ultimately financial markets.”

The lawsuit asks the court to declare that the SEC’s action violates the Administrative Procedures Act and order the SEC to reinstate and enforce the 2020 Rules.

In February 2020, Business Roundtable filed public comments on the SEC’s 2020 Rules. Read the full comments here. In December 2021, Business Roundtable responded to the SEC’s decision to rescind these necessary reforms. Read the full comments here.