Devoted to Corporate Attorneys, Corporate Lawyers, and Corporate Counsel

The following is not meant to be legal advice.

CFO.com reports in its recent issue that the Securities and Exchange Commission has amended its proxy rules to permit issuers to make proxy materials available to shareholders through the Internet.  This is referred to as the Notice and Access model.

In place of annual reports and proxy statements, some companies are using YouTube to send shareholders video files on company updates.  The new SEC rule is meant to reduce the costs for printing and delivery of proxy materials.  Compliance with the new rule begins on July 1, 2007 so this allows some companies to participate during their fiscal year 2007.

Prior to the new rule, an issuer involved in a proxy solicitation would contract with a printer, then a company that does mailing and vote tabulations, to send its proxy materials, bulk mail, to its shareholders along with a proxy card soliciting the vote of each shareholder.