shareholder proposal

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 ?
NYSE: WTR) vote "for" a shareholder proposal concerning extraordinary retirement benefits for Aqua's senior executives.
The top three shareholder proposal topics are political spending/lobbying; general corporate sustainability and climate change-related reporting (including supplier-issued sustainability reports); and equal opportunity employment policies.
The shareholder proposal that requested election of directors by majority vote was approved by 56 percent.
Shareholders of Putnam Premier Income Trust voted to defeat a shareholder proposal to reduce the size of the fund's Board of Trustees by one-third.
announced today that Institutional Shareholder Services ("ISS"), the nation's leading proxy voting advisory service, has recommended that its clients vote in favor of the shareholder proposal calling for the Layne Christensen Co.
Also at the annual meeting, the Company's shareholders rejected a shareholder proposal to urge the Board of Directors to arrange for the spin-off of the Company's pharmacy division to its shareholders.
Shareholder Proposal Four: To Disclose Political Contributions.
A shareholder proposal concerning voting standards for the election of directors was defeated, receiving 48 percent of the votes cast.
This study examines whether the likelihood of a corporate governance shareholder proposal being filed varies with other corporate governance components, specifically leadership structure and/or board composition.
The only shareholder proposal to pass was one changing the voting structure for the election of directors.
Providence said in a proxy statement that the poison pill would delay the consideration of a shareholder proposal and discourage shareholders from communicating, for fear they would trigger the "poison pill" and have a portion of their stock confiscated.
1) and voted against a shareholder proposal to terminate the investment management agreement between Legg Mason Partners Fund Advisor, LLC and the Fund (Proposal No.

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