Proxy Solicitation Regulations

In the United States, business between a publically traded company and its shareholders fall under the regulatory jurisdiction of the Securities and Exchange Commission. The SEC is an independent government agency that enforces federal laws and other policies regarding securities, stocks and options in the United States. The SEC is there to ensure that shareholders are treated fairly by the companies they engage with and that those companies are dealing with others in a fair and transparent manner. A proxy solicitation agency has experience in complying with these regulations, and will make sure that everything is done according to the rules while ensuring your position gets the support it needs.

When it comes to proxy solicitation, the SEC has several rules that must be followed. Most of these rules are about the information that is provided to shareholders. Through every step of the process from proposing a measure to soliciting votes to the vote itself, the SEC needs to approve the information that goes out to the people. Before the solicitations begin, the proposals must be submitted and approved to ensure that there is proper disclosure to the shareholders so they can make an informed decision. Essentially, a party needs the go-ahead from the SEC in order to begin solicitation. Once the SEC sees that their information requirements for a proxy statement are met, solicitation materials can be distributed to the shareholders and the real business can begin.

Your proxy solicitation agency is well versed with the guidelines and regulations of the SEC, and will adhere to them while conducting business on your behalf. They have experience in crafting proxy statements that contain all of the required information while making a powerful case to the shareholders on your behalf. As a director, you can be confident that your proxy solicitation will be carried out in your favor with every attention to detail under the SEC regulations.