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Shareholder Proposals and the SEC

The SEC has proposed changes to the rules governing aktionär proposals. These changes would allow businesses to reevaluate a failed shareholder proposal and consider completely different objectives and means of responding to the same issue. However , companies will need to expect a resubmission will certainly face constraints. In these cases, corporations should consider modifying their pitch to better provide the company’s hobbies.

Shareholder plans are consumer documents that outline the proposed action of a company’s shareholders. They may be publicly unveiled, voted about, excluded based upon a no-action request, or perhaps withdrawn by proponent. Voting results are generally reported based on the amount of stocks voted, excluding abstentions.

Even though some companies might want to exclude shareholder plans that do not really meet all their procedural or substantive requirements, the majority of businesses are required to involve them inside their proxy substances. In addition , they must file advantages for excluding a proposal along with the SEC. The SEC will get approximately 243 no-action requests annually, and a significant portion of these asks for pertain to shareholder proposals.

There are two types of aktionär proposals: managing and aktionär sponsored plans. Shareholder financed proposals happen to be presented by simply shareholders and must be within the company’s proksy materials before a political election is scheduled on the proposal. These plans can address different corporate governance issues, social responsibilities, and financial liabilities.

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