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 5: Approximately 73 percent of the votes cast were voted against the stockholder proposal regarding a report on lobbying.
Fund stockholders also approved a non-binding stockholder proposal requesting that the board of directors 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 percent 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.
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.
Stratus Properties Inc (NASDAQ:STRS) disclosed on Tuesday that as per the preliminary vote count by its proxy solicitor, stockholders re-elected its director nominees, directors William 'Beau'" Armstrong and Charles Porter to the board and rejected the stockholder proposal presented by Carl E.
In addition, the company's shareholders have approved a non-binding advisory resolution on executive compensation and approved a stockholder proposal to declassify the Company's Board of Directors.
Additionally, the company said that under Rule 14a-8 of the US Securities and Exchange Act of 1934, as amended and as set forth under the caption 'Stockholder Proposals for 2014 Annual Meeting' in its proxy statement, stockholders are advised that the 3 October 2013 deadline continues to apply for any stockholder proposal to be considered for inclusion in the proxy statement, for the 2014 meeting.