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Posted On: 03/02/2022 10:48:48 PM
Post# of 36563
Time to add "IH board member" Director to Management.
Innovations to the Proxy Voting System
In the wake of much-publicized corporate scandals perpetrated by the management and directors of various publicly-traded companies over the years, more consideration has been given to revisions of the proxy voting system – most significantly, allowing shareholders to take an active role in introducing resolutions to the proxy. Today, any shareholder (or group of shareholders) who has owned at least $2,000, or 1% of a company's stock continuously for at least a year may introduce a proposal. These proposals are often termed "direct proxy access" and focus most prominently on allowing shareholders to nominate director candidates. On the one hand, this brings fresh perspectives to the board of directors; but on the other hand, lack of experience (among other factors) could cause shareholders to nominate directors who are truly inappropriate for directorship.
Innovations to the Proxy Voting System
In the wake of much-publicized corporate scandals perpetrated by the management and directors of various publicly-traded companies over the years, more consideration has been given to revisions of the proxy voting system – most significantly, allowing shareholders to take an active role in introducing resolutions to the proxy. Today, any shareholder (or group of shareholders) who has owned at least $2,000, or 1% of a company's stock continuously for at least a year may introduce a proposal. These proposals are often termed "direct proxy access" and focus most prominently on allowing shareholders to nominate director candidates. On the one hand, this brings fresh perspectives to the board of directors; but on the other hand, lack of experience (among other factors) could cause shareholders to nominate directors who are truly inappropriate for directorship.
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