NYSE Reproposes Uninstructed Voting Amendment

If you don't fill out a proxy card, your broker can vote your shares any way he pleases, as long as the issue being voted on isn't "controversial." This is called "uninstructed" voting. This rule exists so that shareholder meetings can get quorum. Election of directors is considered non-controversial when there is no opposing slate.

In 2006, the New York Stock Exchange tried to amend its rule (Rule 452) about unistructed voting. It sought to take away the right of NYSE member brokers to vote uninstructed proxies for directors. The SEC did nothing and the proposed amendment died. Last week, the NYSE resubmitted the proposal.

Thanks to Race to the Bottom for its excellent coverage of this issue.