ASA Welcomes SEC Action to Depoliticize Shareholder Proposals

WASHINGTON – The American Securities Association (ASA) today welcomed action from the Securities and Exchange Commission's (SEC) Division of Corporation Finance to clarify its role in the Rule 14a-8 process for the 2025-2026 proxy season.

“ASA applauds the SEC for taking another important step to depoliticize the shareholder proposal process and lower the cost of being a public company," said ASA President and CEO Chris Iacovella. "We look forward to working with Chairman Atkins and the SEC on more lasting changes to the federal proxy rules that prioritize the interests of America's working families, savers, and retirees."

As noted in the SEC's statement, "A company’s Rule 14a-8(j) notification should be limited to the information required by the rule, as well as an unqualified representation that the company has a reasonable basis to exclude the proposal based on the provisions of Rule 14a-8, prior published guidance, and/or judicial decisions.”

SEC staff will take no position on the notification, but it must include the information above and be received within the required timeframe for a public company to exclude the shareholder proposal.

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The American Securities Association (ASA) represents the retail and institutional capital markets interests of regional financial services firms who provide Main Street businesses with access to capital and advise hardworking Americans how to create and preserve wealth. ASA’s mission is to promote trust and confidence among investors, facilitate capital formation, and support efficient and competitively balanced capital markets. This mission advances financial independence, stimulates job creation, and increases prosperity. The ASA has a geographically diverse membership of almost one hundred members that spans the Heartland, Southwest, Southeast, Atlantic, and Pacific Northwest regions of the United States.