Volume III

Issue : 22: December 15, 2005

• Ontario Court of Appeal Overturns Defamation Decision
• SEC Proposes Website Postings to Replace Mail for Proxy Statements and Annual Reports
• German Court Rules Online Publisher Must Monitor Reader Comments
• California Appellate Court Releases Important Decision on Forum Selection and Class Action Restriction Clauses
• Identity Thief Sentenced to 18 Months Imprisonment for Card Skimming
• U.S. Appeals Court Rejects Music Downloaders Fair Use Defence
• EU Telecoms Subject to New Data Tracking Plan

Home > Volume III > Issue 22: December 15, 2005 > SEC Proposes Website Postings to Replace Mail for Proxy Statements and Annual Reports

SEC Proposes Website Postings to Replace Mail for Proxy Statements and Annual Reports

The U.S. Securities and Exchange Commission (“SEC”) has revealed, for public comment, a plan that would allow companies to post annual reports and proxies on their websites, rather than mailing the documents to investors. A final vote by the Commission on whether to adopt the proposed rule is expected to follow later in the year. Previous attempts to reform the present system of mailing out proxy statements and annual reports have failed because of concerns of unfairness to investors who do not use the Internet. However, the SEC points to studies that show that 75% of Americans have access to the Internet. Among investors, the number is likely higher. Therefore, the time to replace the costly and cumbersome mail process may have arrived.

The new rule would be optional and companies could continue to send out printed matter if they wished. Also, companies would still have to send postcards in the mail to investors to alert them that a proxy statement and annual report had been posted. In addition, companies would still have to provide printed matter to investors who requested it.

For additional information, visit:

http://news.com.com/2100-1030_3-5976112.html