October 1, 2007
Dear Chairman Cox:
I’m writing to request that you do not impose further initiatives, s7-16-07 & s7-17-07, that would undermine the influence that any shareholder could hold. I hope that you will not take any action on the proposed initiatives to legislatively restrict the rights of most shareholders, primarily the smallest of them.
The initiative s7-16-07 states that the restrictions to propose amendments does not apply to shareholders that have continuously held more than 5% of the company’s shares, that are eligible to a file a report of beneficial ownership for Schedule 13C, and has filed a report of beneficial ownership on Schedule 13C. My issue is that a small individual investor, like me, may not ever own 5% of a company’s shares, let alone be eligible to file a Schedule 13C. However I like to know that even as a small shareholder that my voice could be heard.
By allowing each investor the option of a voice allows all investors to have a more transparent view of the company’s activities. I feel that requiring a greater stake in a company to have a voice is contrary to what the United States of America was founded upon. I always felt that each American, rich or poor, could have their voice be heard if they wanted it presented in an appropriate forum. Indicatives s7-16-07 and s7-17-07 remove such forums from many American investors.
The proposed initiatives appear to be just another way for corporations to undermine the efforts of long-term investors that seek to have meaningful elections of directors with the voices of all investors heard.
Adding additional requirements for investors and companies to have a proper forum for elections makes it more difficult for our companies to follow the democratic process that our government practices by forcing companies to bar most shareholders from ever having the ability to file proxy access for proposals.
Please refrain from adding additional restrictions to individual investors as a means to retroactively punish some companies’ wrong doings.
Sincerely,
Dustin Bingham