The Securities and Exchange Commission has adopted rules that will improve disclosure to investors regarding the nominating committee processes of public companies and the ways by which security holders may communicate with directors at the companies in which they invest.

The new disclosure requirements enhances the transparency of the nominations and communications processes of public companies and are the next step in the implementation of the recommendations made by the SEC’s Division of Corporation Finance in its July 15 staff report.

The new disclosure standards require companies to disclose important additional information regarding a company’s process of nominating directors. They also require companies to disclose significant, new information regarding shareholder communications with directors.

The commission has solicited public comment on other rule proposals that would implement recommendations in the report regarding the inclusion of disclosure of security holder nominees in company proxy materials.

SEC chairman William Donaldson said, “The commission today continued its efforts to improve the proxy process as it relates to the nomination and election of directors. The disclosure required by these new rules will improve the transparency of the director nomination process and means by which shareholders can work with directors at their companies. This transparency will lead to improved shareholder understanding of these processes.”