Treasurer Laura Montoya
STATE News:
SANTA FE — This week, New Mexico Treasurer Laura Montoya as part of a coalition of 17 state treasurers and finance officials, signed a letter addressed to Securities Exchange Commission (SEC) Chair Paul S. Atkins voicing concerns about a change to Exchange Act Rule 14a-8, which governs the submission of shareholder proposals to companies.
Under the change, Rule 14a-8 permits companies to exclude a shareholder proposal if it is considered “improper under state law”.
Signatories of the letter stressed that relying on untested interpretations of state law to determine which shareholder proposals companies can allow sets a dangerous precedent that increases reputational risk, fuels company instability, and diminishes accountability mechanisms.
“Our concerns are grounded not in ideological preference but in fiduciary duty,” the letter states. “These changes would suppress shareholder governance, diminish corporate transparency and accountability, and create risks to profitability and reputation for companies further undermining the confidence that has attracted global investors to American firms and markets.”
The letter also denounces Chair Atkins’s public comments signaling to companies his “high confidence” that the SEC will honor movements to disregard shareholder proposals based on untested legal counsel. “The Securities and Exchange Commission is tasked with investor protection as a core tenet of its three-part mandate. Under your tenure, the Commission has repeatedly made significant policy changes affecting shareholders’ rights to engage with the companies they own, without undertaking formal rulemakings or soliciting public comment. We are deeply concerned by this trend.”
The full blurb in the article is here:
“Dems fight back — Democratic state finance officials called on the SEC to reverse a recent announcement that they would not weigh in on certain requests by companies to ignore shareholder proposals during the current proxy season (Oct. 1, 2025 – Sept. 30, 2026). Critics have slammed the decision over concerns that it would silence shareholders.
“Rather than alleviating pressure on corporate boards, these changes risk fueling board-level instability and reputational risk if companies appear to block investor voice,” read the letter to SEC Chair Paul Atkins, shared exclusively with POLITICO.
The letter was signed by 17 state treasurers and other financial officials, including from Washington, California and Illinois. The all-Democratic coalition is concerned with accountability for the companies that state pension funds are invested in.
“Sidelining the rule … increases the likelihood that investors will escalate their concerns through more disruptive and adversarial channels,” the letter read, also criticizing Atkins and the SEC for making policy changes “without undertaking formal rulemakings.”
The administration, meanwhile, is trying to cut down on red tape. A spokesperson for the SEC said the decision was made “after thoroughly considering the staff’s role in the shareholder proposal process, staff resources, and timing issues,” adding also that “this decision will allow staff to focus on time-sensitive transactional matters including capital formation and investor protection.” — Natalie Fertig”