Disney Shareholders Can Vote for Auditor
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The Securities and Exchange Commission ruled that shareholders of Walt Disney Co. have the right to vote on a proposal for auditor independence, a decision that may set a precedent for conflict-of-interest questions that were central to the sudden collapse of Enron Corp.
The shareholder resolution on auditor independence, submitted by Financial Investors Trust, requests that Disney bar its outside auditor from doing consulting work for the company.
The SEC denied Disney’s argument for withholding the nonbinding proposal from a vote by shareholders.
The SEC said Disney should allow the resolution to be considered “in view of the widespread public debate concerning the impact of non-audit services on auditor independence and the increasing recognition that this issue raises significant policy issues.”
A Disney official had no immediate comment on the ruling. Disney shares eased 15 cents to close at $20.55 on the NYSE.
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