The Securities and Exchange Commission denied Bank of America’s request to exclude a shareholder proposal from this year’s proxy that asks the Charlotte bank to examine ways to break itself up.
The agency’s decision means Bank of America shareholders will get a chance to vote this spring on the proposal, although such measures typically face an uphill battle in winning stockholder support.
The shareholder behind the proposal said it is the first time the SEC has allowed a measure to go forward that pushes for splitting up a major bank.
The No. 2 U.S. bank by assets in January had asked the SEC for permission to omit the proposal from its upcoming proxy, arguing the measure was too vague. But the SEC sent a letter Tuesday to the bank saying it did not agree with the bank’s effort to dump the proposal.