SEC proposes disclosure rules regarding nominating committees and shareholders' communication with board members

On August 6, the Securities and Exchange Commission (SEC) proposed amendments to the proxy rules to require expanded disclosure of the operation of board nominating committees and new disclosure concerning shareholder communications with directors. These proposed disclosure rules represent the first step in implementing the recommendations of the Division of Corporation Finance (Staff) in their July 15, 2003 report to the SEC entitled "Review of the Proxy Process Regarding the Nomination and Election of Directors" (Staff Report).