U.S.-listed corporations would be allowed to post proxy statements on Web sites instead of sending the bulky annual documents through the mail, under a plan proposed on Tuesday by federal regulators.
The U.S. Securities and Exchange Commission voted 5-0 to put the plan out for a 60-day public comment period, with a final vote by the commission expected to follow later.
Aimed at saving postage and printing costs, the so-called "e-proxy" measure is also seen as a way to possibly cut the costs to shareholders of mounting proxy contests and giving them more power to challenge corporate managers.
"Studies show that today 75 percent of Americans now have access to the Internet and this percentage is rising steadily ... The percentage of investors with Internet access is even higher," said SEC Chairman Christopher Cox at a meeting.
Under the proposed rule, investors would still have to get written notice in the mail that a proxy statement was available online. In addition, investors wishing to continue receiving printed proxy statements could ask for them.
The SEC requires corporations to issue a range of disclosures and documents to the agency and investors, including annual and quarterly reports and proxies.
Proxy statements contain information about matters to be decided by shareholder votes, such as director nominations and resolutions, as well as disclosures of senior executive pay. They are distributed before annual shareholder meetings.
The present system of mailing out proxies is costly, but past efforts to reform it have been stymied by concerns that on-line distribution could exclude off-line investors.
Copyright 2005 Reuters Limited.
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