SRZ Partner Ele Klein Quoted in Bloomberg: “New Rule Will Shake Up How Activist Board Fights Play Out”

In a recent Bloomberg LP newsletter by Scott Deveau, SRZ partner Ele Klein shared his thoughts on new universal proxy rules and how they will impact battles for control of corporate boards.

Ele explained that “[w]hile it’s possible that non-traditional activists may now explore running a proxy contest anticipating a better likelihood of at least partial success, we don’t expect that activist funds will now seek to run campaigns that they would previously have passed over in the absence of the universal proxy card.”

He also cautioned, “we may see companies consider making it more difficult for an activist to nominate by imposing additional nomination disclosure and deadline requirements. This would offset any perceived advantages from a universal proxy in the actual proxy fight.”

Read the article here.