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Investors/Corporates Seek Consensus on Shareholder Proposal (Re)Submittal Thresholds

By Randi Morrison posted 11-29-2018 09:10 PM

  

The WSJ reported that CII, the Business Roundtable and others are negotiating changes to the shareholder proposal submittal and resubmittal thresholds, which may include changes to the $2,000 minimum ownership threshold for proposal submittals, as well as increasing the current 3%|6%|10% support thresholds for resubmittals: 

Amy Borrus, deputy director at the Council of Institutional Investors, said the groups are "engaged in a dialog on a number of issues, including resubmission thresholds, to clarify differences and see if we can find common ground."

Business Roundtable SVP Maria Ghazal said: "You should have to show that you're on the path to majority approval."

Any consensus changes among the groups would still need SEC approval in the form of Rule 14a-8 rulemaking.

          See our reports last week: "Society to Participate in Proxy Process Roundtable, Submits Comment Letters" (Proxy Process Roundtable archive here) and "CII Analyzes Shareholder Proposal Resubmission Thresholds"; the Society's Shareholder Proposals comment letter; and additional information & resources on our Shareholder Proposals page.

          This post first appeared in the weekly Society Alert!

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