O’Melveny’s Heyduk Quoted in Wall Street Journal’s CFO Journal on Broker Voting Restrictions

February 01, 2012


In January 31, 2012’s CFO Journal, part of the Wall Street Journal, O’Melveny & Myers counsel Shelly Heyduk was quoted explaining recent New York Stock Exchange rules that change the way brokers can vote shares. The restrictions affect Rule 452 and only allow brokers to cast proxy votes on uninstructed shares for smaller issues, according to the article. “It’s a big change and it will be most significant for companies with high retail ownership, and for governance proposals that require the approval of a high number of outstanding shares,” said Heyduk in the article. “If a company wants to get a declassification of the board proposal approved, it will be that much more difficult now that brokers don’t have the ability to vote those uninstructed shares.”