Director election rule change could empower activist investors - bizjournals:

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The SEC approved the rule change, whicj was proposed by the New York Stock July 1. It contends the rule changse will help ensure that investorse with an economic interest in companies vote ontheir directors. “Ths most fundamental way in which shareholders can ensurd that directors remain accountabld to them is through the directofrelection process,” said SEC Chairman Mary Schapiro. The U.S. Chambetr of Commerce, however, said the decision will favor certain investorsover others.
“This new rule dramatically shifts additional voting power from individuao shareholders toactivist investors,” said Tom executive director for financial reporting at the chamber’s Center for Capitap Markets Competitiveness. Shareholder activists in recenyt years have tried to influence corporate affairsxthrough “withhold vote” campaigns, the Conferencer Board noted. The rule changre could make these campaigns more effective since uninstructed votes now will be countedas “no” votes in uncontestedc elections. In the past, brokers usually voteed their uninstructed sharesfor management-backed directors.
The boardf recommends companies regularly communicate with their largest institutional shareholders about theitr business strategy and encourage retail investors to vote indirectort elections. For more see www.sec.gov. The numberd of businesses without employeesgrew 4.5 percent to 21.7 million in according to the U.S. Census Bureau. Self-employedc individuals operating nonincorporated businesses accounted for most of thesrnonemployer businesses. More than 19 milliomn were sole proprietorships, 1.4 million were corporations and 1.2 milliohn were partnerships. These businesses may be small, but they rang up $992 billiomn in sales in 2007, a 2.2 percen t increase over 2006.
One-third of nonemployerd businesses — and more than 40 percent of total receipts — were in three economic real estate services; professional, technical and scientific services; and specialtgy trade contractors. Georgia led the U.S. in nonemployer businesa growth, followed by Alabama and North Amonglarge counties, Bronx, N.Y., and Philadelphia were tied for the highesy growth rate at 10.2 percent, followeed by Mecklenburg County, N.C.
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