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SEC Curtails Rule 14a-8 No-Action Reviews for 2025–26, Will Weigh Only State-Law Claims

Resource strain after the shutdown drives a staff pullback that leaves companies to make and defend more exclusion decisions.

Overview

  • The Division of Corporation Finance will not issue substantive views on most shareholder proposal exclusions this proxy season, limiting responses to requests under Rule 14a-8(i)(1) on whether a proposal is improper under state law.
  • The policy covers Oct. 1, 2025 through Sept. 30, 2026 and also applies to pending requests submitted before Oct. 1, 2025 that have not received a staff response.
  • Companies must still file Rule 14a-8(j) notices at least 80 days before definitive proxy filings, which the SEC emphasizes are informational and do not require staff concurrence.
  • Issuers may obtain a non-objection acknowledgment for non‑(i)(1) exclusions by including an unqualified representation that they have a reasonable basis to omit the item, with the staff making no merits assessment.
  • Staff will continue engaging on state-law questions, including unresolved issues around precatory proposals, and the Division of Investment Management plans a substantially similar approach for investment companies, heightening issuer litigation and reputational considerations.