SEC Commissioner Challenges Investor Advisory Committee on Corporate Disclosures

SEC Commissioner Hester M. Peirce challenged the SEC Investor Advisory Committee to consider the effects of COVID-19 on corporate disclosures and the proxy process.

At a meeting of the SEC Investor Advisory Committee, Ms. Peirce recognized the difficulty in providing "forward-looking information" given the "remarkable uncertainty" associated with the COVID-19 pandemic. Ms. Peirce asked the Committee to consider, among other things, best disclosure practices, whether SEC disclosure guidance has been helpful, and information that investors need but are not receiving.

As to the proxy process, Ms. Peirce asked the Committee to consider (i) the lessons learned from virtual shareholder meetings, (ii) potential impediments to shareholder participation, (iii) "lingering" concerns with regard to printing and mailing proxy materials, and (iv) potential SEC relief and guidance.