Conn. court: church can’t be sued by ex-principal (AP)

HARTFORD, Conn. – The Connecticut Supreme Court has ruled that a former Catholic school principal cannot sue the Archdiocese of Hartford on claims she was wrongly fired for not retaliating against a student who complained about sexual remarks allegedly made by a priest.

The high court unanimously overturned a lower court ruling on Monday, saying state courts cannot intrude on religious institutions’ right to decide internal matters.

The plaintiff is Patricia Dayner, former principal of St. Hedwig’s School in Naugatuck. She said her contract was not renewed for the 2005-06 school year because she refused to retaliate against an eighth-grader who complained that the Rev. Stephen Bzdyra (BIZ’-der-ah) used sexually explicit language in a classroom.

Bzdyra is currently on administrative leave because of allegations of child sex abuse, which he denies.

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US court rejects SEC rule on board nominees (AP)

WASHINGTON – A federal appeals court has struck down a rule adopted last year by the Securities and Exchange Commission that gave shareholders more power to nominate board directors.

The U.S. Court of Appeals for the District of Columbia Circuit said the SEC was “arbitrary and capricious” in implementing the rule, which was widely supported by investor advocates. Judge Douglas Ginsburg said the SEC failed to estimate the cost to companies to campaign against investors’ nominations.

The U.S. Chamber of Commerce and the Business Roundtable, a trade group of CEOs for the nation’s largest companies, had challenged the rule, which was mandated under the financial overhaul passed by Congress last year.

A spokesman for the SEC said the agency is reviewing the decision and considering its options.

Supporters of the rule said it was necessary because risky corporate behavior, particularly on Wall Street, was a leading cause of the 2008 financial crisis. Getting candidates on the board would give investors a better shot at influencing company policy.

The rule would have allowed investors owning at least 3 percent of a company’s stock to put their nominees for board seats on the annual proxy ballot sent to all shareholders. Before the Securities and Exchange Commission acted

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Appeals court strikes down SEC’s proxy access (Reuters)

WASHINGTON (Reuters) -A U.S. appeals court has rejected a new Securities and Exchange Commission rule designed to make it easier for shareholders to nominate directors to corporate boards.

In a major blow to the SEC, the U.S. Court of Appeals for the District of Columbia Circuit said the SEC’s rule was “arbitrary and capricious” and that the agency had failed to properly weigh the economic consequences of the new regulations.

The SEC delayed implementing the rule after the U.S. Chamber of Commerce and the Business Roundtable filed their lawsuit, charging that the SEC had failed to adequately assess the rule’s costs.

“We are reviewing the decision and considering our options,” said SEC spokesman Kevin Callahan.

The business groups fear minority shareholders could use the rule to unduly influence board composition and cost companies millions of dollars in contested board elections.

The rule required companies to include a shareholder candidate in their voting materials as long as the nominating shareholders held at least 3 percent of the voting power in the corporate stock for three years.

The court’s decision threw out the rule, although the SEC could try to revive it if it wishes.

Judge Douglas Ginsburg, who wrote the opinion for the court, said the SEC “relied

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