So, what happens next?
The Commission will solicit public comments for 60 days before voting to officially increase the re-submission thresholds and eligibility requirements.
Commissioners will then have to hold a second vote for the rules to take effect.
This means that now is the time for investors to make their voices heard.
Negative corporate lobbying has long been identified as an obstacle to good governance.
The SEC vote presents a challenge for global investors in protecting shareholder and beneficiary interests.
Responsible investment has made great strides everywhere.
Shareholder engagement and voting has been critical in improving corporate governance and elevating ESG issues up the agenda in US companies.
I encourage investors in the coming weeks to stand together, weigh in with the Commission and demand that it puts aside these irresponsible and retrograde proposals.
Fiona Reynolds is chief executive of Principles of Responsible Investment