The Securities and Exchange Commission says Bank of America can omit from its upcoming proxy a shareholder’s proposal for the Charlotte-based bank to be broken up.
The shareholder, Bart Naylor, wanted investors to vote on having the bank examine the idea of divesting all of its non-core banking business segments. Bank of America, though, opposed having the item appear on its proxy for its annual shareholders meeting this spring.
In a letter to Bank of America, the SEC ruled in favor of the bank, which argued that Naylor failed to show he met eligibility requirements to submit his proposal.
Under federal rules, a shareholder cannot submit a proposal unless they have continuously held at least $2,000, or 1 percent, of the company shares that are eligible to vote. Those shares must have been held for at least one year at the time the proposal is submitted.
Naylor said he is appealing.
Only 4.1 percent of voting investors supported a similar proposal from Naylor at the bank’s shareholder meeting last year.
The bank says its next shareholders meeting is set for April 27, but it has not announced a location. The meetings are usually held in uptown Charlotte.