The Securities and Exchange Commission is slated to finally make a decision Wednesday on a rule proposed several years ago by NYSE Euronext (NYX) to bar brokers from voting for corporate directors on behalf of customers in contested or uncontested elections.

NYSE's proposed broker voting rule was first submitted to the SEC in 2006. Much to the chagrin of some investors, however, it has languished there until now.

The proposal seeks to keep brokers from voting on behalf of customers who haven't given voting instructions. Advocates of the rule say it helps empower shareholders. They also note that when brokers vote on behalf of customers, they tend to vote with management.

If approved, the rule would add "election of directors" to the list of items for which a member wouldn't be able to give a proxy vote without instructions from the beneficial owners. It would go into effect Jan. 1.

Prior to the vote on the rule, Commission Luis Aguilar said Wednesday that he strongly supported the proposed NYSE rule and called the right to elect directors a "fundamental right."

"The current NYSE rule on broker voting...allows shareholder inaction to translate into an actual vote," he said. "This is an odd result on such a critical matter."

-By Sarah N. Lynch, Dow Jones Newswires; 202-862-6634; sarah.lynch@dowjones.com