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 ?
Finally, any stockholder proposals submitted for inclusion in the company's proxy materials for the annual meeting must be received by the corporate secretary on or before the above date and will be subject to the requirements of the proxy rules adopted under the US Securities Exchange Act of 1934, as amended, the company's charter and by-laws and Delaware law.
However, the two stockholder proposals presented at the meeting have not been approved, it said.
Five stockholder proposals presented at the meeting were each defeated by the following approximate vote percentages: Cumulative voting, 63 percent against; Independent director as chairman of the board, 86 percent against; Labeling products of cloning or genetic engineering, 92 percent against; Sustainability report, 60 percent against; Report on controlled-atmosphere killing, 91 percent against.
On September 18, however, the SEC reversed itself, clearing the way for a rash of stockholder proposals challenging companies' discrimination policies.
Having moved the date of its meeting by over 30 days from the date of last year's annual meeting of stockholders, the deadline for submissions of stockholder proposals for consideration at the meeting will be at the offices at 2344 Spruce Street, Suite A, Boulder, Colorado 80302, no later than 2 October 2014 and it also said that timely submission of a proposal does not guarantee its inclusion in the proxy materials.
The bank was successful in keeping stockholder proposals on the bank's dividend and executive pay off its upcoming annual meeting ballot.
The company said that all stockholders at the close of business on 17 April 2014 will be entitled to vote at the annual meeting and that date will also be the deadline for stockholders to submit director nominations or stockholder proposals for presentation at the meeting in writing, to the company's corporate secretary Eric Smith at 222 Central Park Avenue, Suite 2100, Virginia Beach, Virginia 23462.
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.