Discretionary Proposition

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A proposal on a proxy card that brokers can cast in favor of management if they have not yet heard from the beneficial holder ten days before the annual meeting. See: Ten-Day Rule

Discretionary Proposition

The ability of a broker, holding a stock on behalf of a client, to vote for that client at the annual meeting of shareholders in the event that the broker mailed the proxy card to the client but has not heard any direction from the client. The discretionary proposition allows the broker to vote in favor of the company's management only. See also: Beneficial Owner, 10-Day Rule.

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