Confirming the recent rumors, the Securities and Exchange Commission has officially posted notice that it will finally hold a vote next week on a proposal to give shareholders access to corporate proxies for nominating directors.

According to the Aug. 18 Sunshine Act Meeting Notice, the SEC will hold an open meeting on Aug. 25 to consider whether to adopt changes to the federal proxy and other rules to facilitate director nominations by shareholders.

The divisive issue has dogged the agency for years. It has tried unsuccessfully to craft rules for proxy access multiple times since 2003. The SEC's five commissioners have themselves been split on the issue, as witnessed by last year's 3-2 SEC vote to publish a rulemaking proposal.

Critics of the concept, including most companies, say it will lead to battles over board seats and will give special interests too much power. Supporters, including public pension funds and others activists, argue that making it easier and less costly for shareholders to nominate directors will help make boards more accountable to a company's investors.

Beyond the debate about whether or not allowing shareholders to place nominations for directors in corporate proxies is a good idea, issues such as how a federal rule would operate, how it would interact with state law, and the Commission's authority to adopt it have been sticking points in the past.

This time, however, the SEC has something it previously didn't—explicit backing from Congress. The Dodd-Frank Act signed into law in July includes language authorizing the Commission to let investors nominate directors on corporate proxies. Section 971 of the bill gives the SEC wide latitude to decide the details of a proxy access rule, including the ability to exempt smaller issuers from complying with it.

The details of the proposal to be voted on next week remain to be seen. The proposal floated by the Commission last summer would allow shareholder access on a sliding scale, where shareholders could gain nomination rights if they hold anywhere from 1 to 5 percent of outstanding shares for at least a year. It would also give shareholders the right to submit proposals related to director elections or the nomination process—including proxy access.

However, given the debate during the congressional conference and the flood of comments the SEC has gathered since that plan was unveiled, it's likely some of the details will look different.

Stayed tuned. Compliance Week will provide readers with complete coverage of next week's meeting.