SEC Rule 14a-8: A Study in Regulatory Failure
Recently the SEC amended rule 14a-8 to restrict its scope some- what.5 The debate preceding and following the amendments also focused on the scope of the rule rather than its existence. The recent amendments and the accompanying debate afford an opportunity to reconsider the wisdom of the rule. Close analysis reveals that the rule imposes substantial costs on issuers and the Commission while its benefits, if any, are highly speculative and not appropriate to the regulatory mission of the SEC. Accordingly, the rule should be abolished. More broadly, the history of the rule's survival despite its ineffective- ness offers an interesting, albeit discouraging, case study in the difficulties of eliminating wasteful and burdensome government regulation.
SEC Rule 14a-8
Place of Original Publication
New York Law School Law Review
30 New York Law School Law Review 1 (1985)
Dent, George W., "SEC Rule 14a-8: A Study in Regulatory Failure" (1985). Faculty Publications. 664.