Shareholder Proposals, Proxy Access and the Current Proxy Season
By Keith D. Pisani
While the current global financial crisis may result in slightly fewer shareholder proposals being submitted in the 2008-2009 proxy season, hundreds of shareholder proposals will undoubtedly be submitted to U.S. corporations during the current proxy season. As a result, companies should be aware of the rules governing shareholder proposals and be prepared to respond if a shareholder proposal is received. In addition, there have been several recent developments with respect to proxy access, which is industry jargon for regulatory changes that would expressly allow shareholders access to a companys proxy statement for the purpose of electing directors not nominated by the companys board.