Chamber of Commerce challenging new SEC rules for shareholders to nominate directors

Chamber challenges new SEC shareholder rules

WASHINGTON — The country’s biggest business lobby is challenging in court new government rules that make it easier for shareholders to nominate directors of public companies and to oust sitting directors.

The U.S. Chamber of Commerce and another business group filed a lawsuit Wednesday against the Securities and Exchange Commission’s new rules. The rules allow groups that own at least 3 percent of a company’s stock to put their nominees for board seats on the annual proxy ballot sent to all shareholders.

A Chamber of Commerce representative says the changes give power to unions and other groups “at the expense of” the majority of individual shareholders.

The changes were long sought by investor advocates.

SEC spokesman John Nester said Wednesday the agency believes the rules “are both lawful and in the best interests of the public and shareholders.” The SEC will file a response to the lawsuit soon, he said.