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 ?
Because the September 29, 2015 Annual Meeting date is more than 30 days after the anniversary of the Company's 2014 Annual Meeting of Stockholders, the deadline for submitting stockholder proposals made pursuant to Rule 14a-8 ("Rule 14a-8") of the Securities Exchange Act of 1934, as amended, and for non-Rule 14a-8 stockholder proposals has been extended.
on Tuesday re-elected 10 directors to the Burbank entertainment giant's board and soundly rejected stockholder proposals to alter the board election process and consider reducing executive compensation.
On September 18, however, the SEC reversed itself, clearing the way for a rash of stockholder proposals challenging companies' discrimination policies.
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.
Because the expected date for the Annual Meeting represents a change of more than 30 days from the anniversary of the Company's 2014 annual meeting of stockholders held on August 6, 2014, the Company has set a new deadline for receipt of stockholder proposals for inclusion in the Company's proxy statement for the Annual Meeting, pursuant to Rule 14a-8 of the Securities Exchange Act of 1934, as amended, of January 15, 2015.
In addition, the Company announced that the deadline for timely submitting stockholder proposals for potential inclusion in the proxy statement for the 2012 Annual Meeting of Stockholders has been set at April 13, 2012.
As a result, pursuant to Rule 14a-8 under the Securities Exchange Act of 1934, as amended, Fluidigm has set a new deadline for the receipt of any stockholder proposals submitted pursuant to Rule 14a-8 for inclusion in Fluidigm's proxy materials for the 2012 annual meeting.
As a result, pursuant to Rule 14a-8 under the Securities Exchange Act of 1934, as amended, UTStarcom has set a new deadline for the receipt of any stockholder proposals submitted pursuant to Rule 14a-8 for inclusion in UTStarcom's proxy materials for the 2010 Annual Meeting.
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.
As a result, pursuant to Rule 14a-8 under the Securities Exchange Act of 1934, as amended, the Company has set a new deadline for the receipt of any stockholder proposals submitted pursuant to Rule 14a-8 for inclusion in the Company's proxy materials for the Annual Meeting.
Pursuant to Rule 14a-8 under the Securities Exchange Act of 1934, as amended, UTStarcom previously set a deadline of March 26, 2008 for the receipt of any stockholder proposals submitted pursuant to Rule 14a-8 for inclusion in UTStarcom's proxy materials for the 2008 Annual Meeting.
The stockholders voted against five stockholder proposals regarding an assessment of Halliburton's human rights policies, additional disclosure of political contributions and expenditures, a report on low carbon energy research, development and production, additional disclosure regarding Halliburton's executive compensation consultant and a report regarding Halliburton's Iraq operations.