From: Prissy Grace |
I am opposed to the elimination of the right of shareholders to file non-binding resolutions at corporations. For over three decades, shareholder proposals have provided large and small shareholders with a voice in the bovernance of corporatons on which our financial futures depend. Doing away with these proposals would be a setback for shareholder democracy and corporate governance more generally. by supporting resolutions through their proxy votes, investors can signal managmenment that theissues addressed in the resolutions are materila and require managmement attention. This year, several resolutions calling for corporate governance reforms received votes of 50-85%. Shareholder proposals asking for a majority voting standard for directors and shareholder votes on executive compensation are receiving high votes. Many companies have agreed to adopt reforms or engage in dialogue with proponents. Many successful resolutions were filed by small shareholders, demonstrating that the size of holdlings does not necessarily relate to the quality of ideas. Becauase precatory resolutions are non-binding, and because of strict subject matter and formatting restrictions, they do not create burdensome requements on management. Eliminating this right, would remove an important tool of managment accountablility to shareholders. We would strongly oppose any effort to curtail this important component of shareholder democracy. I am opposed to any recomendation that would weaken the rights of shareholders to file non-binding resolutions. |