The Presbyterian Church (U.S.A.) has been using its voice as a shareholder to advocate for the justice policies of the denomination with publicly traded companies for decades. A key part of that advocacy includes filing shareholder resolutions with companies. These resolutions ask companies to disclose information, to measure and report on the potential impacts of their operations, or to adopt or change policies and practices to mitigate against those potential impacts.
Shareholder resolutions have been crucial in getting companies to respond to the PC(USA)’s concerns, resulting in dialogues and actions that bring company activity better into alignment with the denomination’s justice values while improving company performance. The PC(USA) has filed over 50 resolutions in the last 6 years.
Now, the Securities and Exchange Commission (SEC) has proposed to rescind Rule 14a-8, which allows for that process. Rule 14a-8 was created in 1942 and establishes a uniform system for ensuring adequate corporate disclosure. By repealing this rule, the SEC is preventing shareholders from getting the information they need and preventing faith-based investors like the PC(USA) from exercising religious freedom through the shareholder process. Shareholder resolutions have helped expose financial risks, strengthen corporate governance, and protect long-term value. Taking away this tool would leave investors with fewer ways to spot problems before they become costly. It would also give corporate executives more power.
The PC(USA) believes church investment is more than a practical question. It is also “an instrument of mission and includes theological, social and economic considerations” (183rd General Assembly, UPCUSA, 1971). This belief flows from our understanding of the stewardship of God’s resources entrusted to the church. Thus, “we confess that the Lord is really the acknowledged Master of our entire life-moral, physical and material” (116th General Assembly, PCUS, 1976). The 197th General Assembly (1985) affirmed and noted the “importance of the church’s stewardship of its resources, including the management of its investments in a manner consonant with its commitment to justice.” The recission of rule 14a-8 would make this stewardship and management much more difficult.
What You Can Do
The SEC is accepting public comments through November 20th on this proposal.
Write to the SEC, urging the rejection of this proposal and defending shareholder rights.
You do not need to be a financial expert or have filed a shareholder resolution yourself in the past to speak up.
Suggested language:
Dear Securities and Exchange Commission:
I oppose the SEC's proposal to eliminate the shareholder resolution rule. Shareholders are owners, and owners deserve a voice in the companies they invest in.
[Mention how you individually, or your church or mid-council relies on proxy voting guidance from the PC(USA), if you do].
Investing in ways guided by our faith is key to our success and long-term value. We view our investments not just as vehicles for financial returns but as an expression of our faith. The Presbyterian Church (U.S.A.) has been using its voice as a shareholder for over 55 years and has engaged hundreds of companies on issues that affect the company’s long term financial value. These have often led to constructive discussions prompted by the filing of a shareholder resolution.
I urge the SEC to reject this proposal and preserve shareholder rights.
For additional guidance on submitting a more detailed letter, this template provides sample language and instructions on how to submit your comment. You may access the proposed rule or directly submit comments via the SEC website here.
Please reach out to Katie Carter at katie.carter@pcusa.org with any questions.
Urge the SEC to reject this proposal and protect shareholder rights!