The U.S. Securities and Exchange Commission is considering changes to the proxy voting system in the United States.

On Wednesday, the SEC voted unanimously to issue a concept release that seeks public comment on the proxy system, and asks whether rule revisions should be considered. The concept release focuses on the accuracy and transparency of the voting process, the manner in which shareholders and corporations communicate, and the relationship between voting power and economic interest.

“The proxy is often the principal means for shareholders and public companies to communicate with one another, and for shareholders to weigh in on issues of importance to the corporation,” said SEC chairman, Mary Schapiro. “To result in effective governance, the transmission of this communication between investors and public companies must be timely, accurate, unbiased, and fair.”

It has been nearly 30 years since it last carried out a comprehensive review of the proxy voting infrastructure, the commission noted. And, since then, there have been significant changes in shareholder demographics, technology, and other areas, it said. There will be a 90-day public comment period for the concept release.

Earlier this year, the Canadian Securities Administrators proposed a series of changes to shareholder communication rules in Canada. That initiative is out for comment until the end of August.

IE