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Corporate Governance

: PomTalk

Investors Will Gain More Rights from Financial Reform

By Fei-Lu Qian

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It has been a long process, but the end is near as Senate and House negotiators recently reached agreement on the major financial regulatory reform legislation called Dodd-Frank Wall Street Reform and Consumer Protection Act.  In a press release by the House Committee on Financial Services, it notes that Congress ?must restore responsibility and accountability in our financial system to give Americans confidence that there is a system in place that works for and protects them.?

Once the entire Congress passes the legislation and President Obama signs it, shareholders will have more ?say on pay and corporate affairs with a non-binding vote on executive compensation and golden parachutes? and credit rating agencies will be required to be more transparent and accountable to investors.  The California State Teachers? Retirement System (CalSTRS) praised the action on the legislation and urged swift passage by the full Congress.

However, let?s not forget that the legislation still fails to provide for aiding and abetting liability and there is still room for more proxy rights for shareholders.

Full post as published by PomTalk on June 30, 2010 (boomark / email).

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