shareholder proposal

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Shareholder Proposal

A proposal for a publicly-traded company to take a certain course of action, submitted by a shareholder. Any shareholder who owns more than $2,000 in stock or 1% of the company is permitted to initiate a shareholder proposal. It must be placed on the agenda and put to a vote at the next available annual shareholders meeting, unless the SEC gives the company special permission to exempt it. Generally speaking, a shareholder makes a shareholder proposal to force the company to do something that the management does not want it to do. As a result, management tends to urge shareholders to vote against shareholder proposals, though they may seek a compromise with the shareholders if the proposal is popular.

shareholder proposal

A proposal that is submitted by a shareholder for action at a forthcoming annual meeting. If the holder gives timely notice of his or her intentions, the firm's management must include the proposal in the proxy statement and must give the other shareholders a chance to vote for or against the proposal. Typical shareholder proposals involve voting rights, management compensation, and corporate charitable contributions.

Shareholder proposal.

A shareholder proposal is a resolution that's put forward for consideration at a corporation's annual meeting by an individual shareholder or a group of shareholders rather than by the corporation's board of directors.

A shareholder who has owned at least $2,000 worth of stock or 1% of a company's outstanding shares for at least a year is entitled to offer a proposal.

In most cases, management opposes these proposals and urges shareholders to vote against them. However, management may negotiate with activist investors to make changes in corporate policy to avoid the threat of a shareholder proposal.

A shareholder proposal must be included in proxy materials unless the corporation receives authorization from the Securities and Exchange Commission (SEC) to omit it.

References in periodicals archive ?
Item 4: Approximately 61 percent of the votes cast were voted against the stockholder proposal regarding exclusive forum provisions.
A non-binding stockholder proposal was also submitted to stockholders, which requested the Board of Directors to consider authorizing a self-tender offer for all outstanding shares of the Fund at or close to net asset value, and, if more than 50% of the Fund's outstanding shares are tendered, to cancel the tender offer and take the steps necessary to liquidate, merge or convert the Fund to an open-end mutual fund.
Repligen Corporation (NASDAQ:RGEN) today announced that it will support an amended stockholder proposal based upon an agreement with Ronald L.
In addition, a stockholder proposal recommending that the Board of Directors consider causing the Fund to conduct a self-tender offer for all of its outstanding shares was overwhelmingly defeated.
Also at the meeting, two advisory stockholder proposals were voted upon: a stockholder proposal requesting the Board of Directors to provide an annual advisory vote on electioneering, political contributions and communication expenditures received less than 5% of the shares cast and was not approved; and a stockholder proposal requesting the Board to adopt a rule to redeem any current or future stockholder rights plan unless such plan is submitted to a stockholder vote within 12 months received 68% of the shares cast and was approved.
Also at the Meeting, Fund stockholders approved a nonbinding stockholder proposal requesting that the Board of Directors of the Fund (the "Board") consider authorizing a self-tender offer for all outstanding common shares of the Fund at or close to net asset value, and, if more than 50% of the Fund's outstanding common shares are tendered, to cancel the tender offer and take the steps necessary to liquidate, merge or convert the Fund to an open-end mutual fund.
In order for a stockholder proposal to be considered for inclusion in the proxy statement, it must be received by the Company on or prior to the close of business on April 13, 2012 (5:00 p.
The proxies that the Company solicits for the 2015 Annual Meeting will confer discretionary authority on the proxy holders to vote on any stockholder proposal presented at that meeting, unless the Company receives notice of such stockholder's proposal not later than February 6, 2015.
Item 5: Approximately 25 percent of the votes cast were voted for the stockholder proposal regarding the appointment of an independent director with environmental expertise.
In accordance with the requirements for advance notice set forth in UTStarcom's bylaws, in order for a stockholder proposal to be submitted outside of Rule 14a-8 or a director nomination to be considered timely, such proposal or nomination must be received by the Corporate Secretary by close of business on October 11, 2010 at the address noted above.
Also at the meeting, two stockholder proposals were voted upon: a stockholder proposal requesting the Board of Directors to adopt a policy on the human right to water was not approved; and a stockholder proposal requesting the Board to take action to eliminate super-majority voting was approved.
Also at the meeting, two stockholder proposals were not approved: a stockholder proposal requesting the Board of Directors to adopt a policy on the human right to water; and a stockholder proposal requesting the Board of Directors to amend the company's By-Laws to provide holders of 10% of the outstanding common stock the power to call special stockholder meetings.