Citizens Funds said this week that it supports Securities and Exchange Commission chairman Harvey Pitt’s call to eliminate a regulation that allows corporations to overrule shareholder resolutions.

The provision, known as the "Ordinary Business" rule, is part of the Securities and Exchange Act of 1934 and allows companies to mow down shareholder resolutions if the results are deemed to interfere with a firm’s operations, Citizens said.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.