SEC Issues No-Action Relief to Company Regarding Exclusion of Shareholder Proposal

The SEC issued a no-action letter in response to a request by Harris Harris Group, Inc. (the "Company") to omit Aegis Capital Corp.'s shareholder proposal and supporting statement from the Company's proxy materials. The relevant proposal required the Company to conduct a mandatory buy-back of its own stock under certain conditions.

The Company asserted that the proposal and supporting statement could be omitted, in reliance on Exchange Act Rule 14a-8, on the grounds that the proposal (i) is not a proper subject for action by shareholders under the laws of the jurisdiction of the Company's organization, and (ii) deals with a matter relating to the Company's ordinary business operations.

See:SEC No-Action Letter.