This doesn't sound bad to me. I actually like it, and I'm not remotely conservative (I'm one of those weird Independents). Every shareholder is not equal, so it makes sense that those with a significant amount of ownership and who are truly invested (3 years minimum holding of 1% of the company) get to propose changes to the company's board. I see nothing wrong with that. If the remaining investors who own under 1% don't like it, they'll sell and the stock price will drop. It's a self-regulating system.

If you're on a BOD and you have 50,000 proposals being thrown at you from idiots on ScumHub just to fuck with your company, it makes sense that some regulation should be in place to prevent such behavior.