Our E-proxy coverage

Update: On July 26, 2007, the SEC posted the adopting release for the final rule requiring companies to post their proxy materials on their websites. The adopting release states: “The materials must be presented on the Web site in a format, or formats, convenient for both reading online and printing on paper.” This statement has a footnote that goes on to explain: “We believe that requiring readable and printable formats is important so that shareholders have meaningful access to the proxy materials. When determining the readability and printability of formats, issuers should consider the size of the files because many shareholders do not have broadband connections. Although some types of files may be suitable for persons with high-speed Internet access, the readability and printability of a document may be affected significantly by the time that it takes to download the document.” Alan Singer, who I quoted in the original article tells me that in a conversation with SEC staff subsequent to this article, the staff advised him, as is implied in the release, that PDF files are too big and would be troublesome for people who do not use broadband. This development obviously means the SEC is not going back on the usability requirements. It also suggests that companies will need to ensure that it is easy for people to print out the reports or parts of them without having to download large files. I’m leaving the original article in place because I believe it is useful in understanding why the SEC’s decision on online formats is important.