SEC Approves NYSE’s Amended ‘Related Party’ and ‘20%’ Stockholder Approval Rules

On April 2, 2021, the Securities and Exchange Commission approved, on an accelerated basis, an amended proposal by the NYSE to amend certain of its stockholder approval rules set forth in the NYSE Listed Company Manual. The formal approval comes after the NYSE instituted a temporary waiver of these rules due to the challenges companies faced during the COVID-19 pandemic. In this article, partner Ele Klein and associate Evan Berger outline the changes to the “related party” and “20%” stockholder approval rules.