Does that mean the rule amendments only apply to brokers who hold shares of NYSE-listed companies?
The NYSE is both a regulatory body for its “member organizations” (i.e. brokers) and a stock exchange for listed companies. Rule 452 affects all brokers regulated by the NYSE. Therefore, the amendments to Rule 452 affect all public companies regardless of the exchange upon which their securities are listed or traded, with the exception of companies registered under the Investment Company Act of 1940, which were specifically excluded by the amendments. Why are brokers no longer able to vote in their discretion in the election of directors? The amendments to NYSE Rule 452 removed the election of directors from the list of “routine” matters upon which brokers may vote in their discretion. Brokers may not vote in their discretion on non-routine matters, but must have instructions from the underlying beneficial holder in order to cast a vote. This underlying holder is commonly referred to as the “street name” or “retail” shareholder. Prior to the amendment, what effect did broker voting hav
The NYSE is both a regulatory body for its “member organizations” (i.e. brokers) and a stock exchange for listed companies. Rule 452 affects all brokers regulated by the NYSE. Therefore, the amendments to Rule 452 affect all public companies regardless of the exchange upon which their securities are listed or traded, with the exception of companies registered under the Investment Company Act of 1940, which were specifically excluded by the amendments. Why are brokers no longer able to vote in their discretion in the election of directors? The amendments to NYSE Rule 452 removed the election of directors from the list of “routine” matters upon which brokers may vote in their discretion. Brokers may not vote in their discretion on non-routine matters, but must have instructions from the underlying beneficial holder in order to cast a vote. This underlying holder is commonly referred to as the “street name” or “retail” shareholder. Prior to the amendment, what effect did broker voting hav
