The SEC has proposed a welcome proxy reform to stop telling companies how to handle shareholder resolutions.

The agency wants to end the practice of issuing guidance that effectively dictates corporate responses to shareholder proposals. This shift would reduce regulatory burdens and restore balance.

Currently, the SEC staff often provides informal advice that companies rely on. The reform would eliminate this, allowing firms to exercise their own judgment.

This change is a positive step toward deregulation and could lead to more efficient corporate governance. It aligns with the SEC's mission to protect investors while not micromanaging businesses.

Overall, the proposal is a sensible move that respects both shareholder rights and corporate autonomy.