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The New York Stock Exchange rule permitting member firms (brokers) to vote in favor of management ten days or less before the meeting, provided that the member firm mailed proxy material to beneficial owners at least 15 business days before the meeting. The rule allows many shares to be voted, which would otherwise not be, to reach a quorum, approve the choice of directors and auditors and handle other routine matters. This rule does not apply to banks, their nominees or their depository positions, nor to non-routine proposals such as approval for the corporation to issue more shares.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
In shareholder meetings, a rule on the New York Stock Exchange allowing member firms to vote with the management of a company that trades on the NYSE if there are 10 or fewer days until a meeting. The 10-day rule only applies if the member firm has attempted to contact the beneficial owners of shares in a timely manner, have received no response, and the meeting would otherwise not be able to make a quorum unless the member firm votes.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved