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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
- rejected an advisory stockholder proposal requesting that the Board of Directors take steps necessary to permit stockholders to act by written consent without a meeting.
The deadline for any stockholder proposal is coming soon: it is the close of business on February28.
We believe that they are the right stewards at this important moment in TSR's history." At the annual meeting, Zeff Capital also intends to present a stockholder proposal related to the elimination of TSR's classified board, which prevents each director from being held accountable to stockholders on a yearly basis.
The company's stockholders also voted against a stockholder proposal on voting matters related to climate change.
arbitration stockholder proposal and why it is likely to be upheld if
As a result of the Board's action, hospitality industry union UNITE HERE has agreed to withdraw its stockholder proposal related to the Company's stockholders rights plan, said company officials, and as a result the proposal will not be presented at the Company's 2013 annual meeting of stockholders.
A stockholder proposal to implement a policy regarding related party transactions (in lieu of the company's current SEC compliant policy) was not approved.
REJECTED: A stockholder proposal urging directors at St, Louis-based Emerson electric company to ban antigay discrimination, February 4.
It is time to fold USA Today, a dissident stockholder proposal argues.
Further, the shareholders approved and ratified the selection of Tait Weller & Baker LLP as the company's independent registered public accounting firm for the year ending 31 December 2018; did not approve the non-binding stockholder proposal recommending that its board of directors reduce the ownership threshold required for stockholders to call a special meeting; and approved the non-binding stockholder proposal recommending that its board approve a self-tender offer for at least 50% of it outstanding common stock.