LAW & REGULATION
From Times Staff and Wire Reports
The American Stock Exchange sought regulatory approval for a plan that would limit companies trading on its floor from granting powerful voting rights to certain shareholders. But its proposal, filed with the Securities and Exchange Commission, falls far short of the SEC’s attempt to preserve the principle that a stockholder should have one vote for each share held in a company. That principle was eroded in the 1980s when companies trying to thwart takeovers began issuing insiders--founders, or large shareholders--more voting rights than the average stockholder. The move gave the insiders greater say over a company’s affairs.
