SEC Blocks Bank of America Shareholder Vote on Climate Change
The Securities and Exchange Commission (SEC) has intervened in a shareholder proposal at Bank of America, setting the stage for the 2024 proxy season. The SEC's decision, based on the 'ordinary business rule', will impact the bank's annual general meeting.
Bank of America faced a proposal from activist shareholders, including As You Sow, seeking a detailed report on the bank's financed emissions in specific sectors. The proposal aimed to increase transparency and accountability regarding the bank's environmental impact.
The SEC addressed a letter to Bank of America on February 29, stating that the proposal would not be discussed at the 2024 annual general meeting. The SEC's decision was based on the 'ordinary business rule', which allows companies to avoid discussing certain climate-related resolutions if they convince the SEC that the proposal seeks to micromanage the company's operations. This rule is expected to play a critical role in the 2024 proxy season, potentially limiting shareholder influence on environmental and climate sustainability issues.
The SEC's intervention in the Bank of America shareholder proposal signals a potential shift in the 2024 proxy season. The 'ordinary business rule' may limit shareholder discussions on climate-related resolutions, raising questions about the balance between corporate autonomy and shareholder influence on environmental issues.
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