Robinhood CFO Reveals Plans for Increased M&A Activity

The Securities and Exchange Commission (SEC) recently announced a new proposal to update the rules around shareholder proposals. These proposals are requests by shareholders for a publicly traded company to address a certain issue or take a specific action.

If the proposal is approved by the SEC, it will raise the bar for shareholders to submit proposals for consideration at company meetings. Under the new rules, shareholders must hold $25,000 worth of a company’s stock for at least one year in order to be eligible to submit a proposal. This is a significant increase from the current requirement of $2,000 worth of stock for one year.

Additionally, the proposal aims to limit the number of times a shareholder can resubmit a proposal that has been voted on in the past. If a proposal receives less than 5% support the first time it is voted on, the shareholder will be limited in how many times they can resubmit it in the future.

The SEC argues that these changes are necessary to prevent shareholders with small stakes from submitting proposals that may not be in the best interest of the company as a whole. However, critics of the proposal argue that it could limit shareholder input and stifle important discussions on issues like climate change, diversity, and corporate governance.

Overall, the new proposal from the SEC could have significant implications for how shareholders engage with publicly traded companies. It will be interesting to see how the proposal is received and if any changes are made before it is finalized. Stay tuned for updates on this developing story.