The SEC is in the process of reinventing itself. Under the current administration, the agency is aggressively pursuing deregulation. In November 2025, the SEC adopted a hands-off approach to “no action” requests. Last month, the SEC announced it would extend this policy indefinitely. Now the agency is looking to go a step further and exit the shareholder proposal game altogether. On August 28, the SEC advanced a proposal to the Office of Information and Regulatory Affairs (OIRA) for review. The proposal is listed on the OIRA website as “Rescission of Rule 14a-8’s Federal Regulation of Shareholder Proposals and Amendments to Rule 14a-4.” Over on TheCorporateCounsel.net John covered this development, writing:
“The first proposal is currently titled ‘Shareholder Proposal Modernization,’ but in case you’re wondering what the SEC intends to do with shareholder proposals, the dashboard includes the following statement: ‘we request the title appear on reginfo.gov as ‘Rescission of Rule 14a-8’s Federal Regulation of Shareholder Proposals and Amendments to Rule 14a-4.” Yeah, I think we can pretty much count on participants in the shareholder proposal industry moving immediately to DEFCON 2 on this news.”
After OIRA approves the proposal, the SEC can move forward with the rulemaking process. This proposal is certain to garner many public comments. Ultimately, if the SEC moves forward with the rescission, shareholder proposal regulation will be handed over to the states.
Our members can learn more about shareholder activism here.
If you’re not already a member, sign up now and take advantage of our no-risk “100-Day Promise” – during the first 100 days as an activated member, you may cancel for any reason and receive a full refund. But it will probably pay for itself before then. Members also save hours of research and reading time each week by using our filtered and curated library of ESG/sustainability resources covering over 100 sustainability subject areas – updated daily with practical and credible information.
Practical Guidance for Companies, Curated for Clarity.
