– SEC commissioner Mark Uyeda has advised investors concerned about SpaceX's corporate governance to simply avoid buying the company's shares, Reuters reports (paywall).
Responding to criticism over SpaceX's dual-class share structure, which gives CEO Elon Musk significant control, Uyeda said US securities laws neither permit nor prohibit such arrangements, instead requiring companies to disclose their governance structures so investors can make informed decisions. He added that investors' most effective response to governance concerns is to choose not to purchase the stock.
Uyeda also said the SEC has limited authority over stock index providers that decide whether to include companies with uneven voting rights. His comments come after pension funds raised concerns about SpaceX's governance following its record-breaking initial public offering and inclusion in major indexes. In the interview, Uyeda also highlighted broader questions around proxy advisers, shareholder proposals and the growing influence of index funds.
– Dell Technologies shareholders have approved the company's proposal to move its legal incorporation from Delaware to Texas, making it the second Fortune 500 company this year to secure investor backing for such a move after Exxon Mobil.
According to Bloomberg Law (paywall), 97 percent of votes cast supported the proposal, reflecting growing corporate interest in Texas' business-friendly legal framework. The move will allow Dell to adopt Texas laws that enforce stricter requirements on shareholder proposals and derivative lawsuits, including minimum ownership thresholds for certain legal actions.
Dell said the move aligns its legal home with its operational base, as the company was founded in Texas and maintains its headquarters and largest US workforce there.
– ISS and Glass Lewis have landed a third legal victory against Republican-backed state laws targeting proxy advisers after a federal judge blocked an Indiana measure requiring additional disclosures.
According to Reuters, the injunction prevents a law due to take effect from July 1 that would have required the proxy firms to provide a written financial analysis or disclose that none was conducted, when recommending votes against company management.
Supporters said the measure would keep voting advice focused on financial outcomes, while the proxy advisers argued it violated their free speech rights. US District Judge Matthew Brookman agreed the law amounted to unconstitutional viewpoint discrimination because it imposed requirements only when advisers disagreed with management.
– The US Equal Employment Opportunity Commission (EEOC) has voted to revoke two longstanding policy documents governing voluntary affirmative action programs, saying they are inconsistent with Title VII of the Civil Rights Act and subsequent US Supreme Court rulings.
The agency withdrew its 1979 guidelines on affirmative action and the related compliance manual, which had provided employers with a framework for implementing voluntary race, sex and national origin-conscious employment practices. EEOC chair Andrea Lucas said the move reaffirms that Title VII protects all workers equally and aligns the agency's guidance with current law.
Commissioner Kalpana Kotagal, the commission's only Democrat, opposed the decision, arguing the guidelines remained a valuable tool for employers seeking to address workplace discrimination.
– The FTC has published proposed new guidance warning that AI companies could face legal risks if they modify chatbot outputs to advance certain ideological agendas.
As reported by Reuters, the agency said developers that train AI systems to avoid responses considered discriminatory could, in some cases, violate Section Five of the Federal Trade Commission Act, which prohibits unfair or deceptive business practices.
The proposal also suggests that compliance with certain state laws, including Colorado's AI law aimed at reducing discrimination in employment and other high-impact decisions, could conflict with federal consumer protection requirements.
The FTC said consumers may be misled if AI companies present their systems as objective while altering the software’s output for ideological reasons. The FTC will accept public comments on the proposed policy through July 31.
– Several leading Ocado shareholders have called for the removal of chair Adam Warby after the board's unsuccessful attempt to appoint former Marks and Spencer executive Archie Norman as chair without consulting investors.
According to The Financial Times (paywall), the proposal was abandoned after strong shareholder opposition, prompting concerns over the company's governance and board succession process.
Investors criticized the lack of transparency and engagement, arguing the episode exposed weaknesses in the board's decision making. Some shareholders have written to the board urging Warby to step down, saying confidence in his leadership has been undermined. Ocado has acknowledged the feedback and said it remains committed to engaging with investors while continuing the search for a new chair.
Natalie Bannerman
Natalie is a former telecoms and infrastructure journalist, a role she held for nearly seven years. Before this, she worked in the B2C startup space, covering lifestyle, arts and culture reporting. As senior reporter for Governance Intelligence she...
