The Securities and Exchange Commission will allow companies to use the Internet for most public announcements under new rules published last week, reports CNet News.com. The issue first got aired when Sun Microsystems CEO Jonathan Schwartz argued for the change on his blog. SEC Chairman Christopher Cox hinted in a reply on Schwartz's blog that he agreed.

The rules are now available on the SEC's Web site. Given how much financial information is already on the Web and how much of it is used by all types of managers, it's really about time that the SEC caught up with this stuff. People who are actively managing their portfolios as well as professional managers get all their information from the Web now, or if they don't, they can't possibly be doing much of a job.

The new rule also has the potential to greatly improve shareholder democracy. Internet proxy materials can be accompanied by an Internet voting platform, which should only boost participation rates.

The new rules still preserve the old paper form or allow for separate e-mail notification, which means that no one loses any rights but it will only be a matter of time until the paper proxy goes the way of the buggy whip and the eight-track tape.