Glossary entry (derived from question below)
English term or phrase:
bear the cost of distributing a rival proxy
English answer:
pay themself for finding another proxy
Added to glossary by
Polangmar
Dec 14, 2007 21:28
16 yrs ago
English term
must BEAR THE COST of distributing a RIVAL PROXY.
English
Bus/Financial
Business/Commerce (general)
-->paraphrasing welcome
Any shareholder wishing to propose an alternative slate of directors must bear the cost of distributing a rival proxy. An attempt in 2003 by William Donaldson, then SEC chairman, to allow shareholders to nominate directors on the company proxy was shelved when bosses objected.
Many thanks in advance
Any shareholder wishing to propose an alternative slate of directors must bear the cost of distributing a rival proxy. An attempt in 2003 by William Donaldson, then SEC chairman, to allow shareholders to nominate directors on the company proxy was shelved when bosses objected.
Many thanks in advance
Responses
+2
1 hr
Selected
must pay herself/himself for finding another proxy
More explanation here:
Proxy machinery: In the absence of “even a substantial minority interest . . . control may be held by the directors or titular managers who can employ the proxy machinery to become a self-perpetuating body, even though as a group they own but a small fraction of the stock outstanding”
Because few shareholders can attend the corporation’s annual meeting due to constraints of time and $, management solicits proxies from shareholders at corporation’s expense
These proxies typically appoint management (or their nominees) as the shareholders’ representative to vote their shares at any annual or special meeting
Persons wishing to oppose management must undertake a rival proxy solicitation, a very costly venture, at their own expense
Stockholders may hesitate to back unknown rival proxy slate
http://tinyurl.com/3c3qwy
Proxy machinery: In the absence of “even a substantial minority interest . . . control may be held by the directors or titular managers who can employ the proxy machinery to become a self-perpetuating body, even though as a group they own but a small fraction of the stock outstanding”
Because few shareholders can attend the corporation’s annual meeting due to constraints of time and $, management solicits proxies from shareholders at corporation’s expense
These proxies typically appoint management (or their nominees) as the shareholders’ representative to vote their shares at any annual or special meeting
Persons wishing to oppose management must undertake a rival proxy solicitation, a very costly venture, at their own expense
Stockholders may hesitate to back unknown rival proxy slate
http://tinyurl.com/3c3qwy
4 KudoZ points awarded for this answer.
Comment: "many thanks!!!"
+1
5 hrs
Bernhard Sulzer
United States
United States
Specializes in field
United States
High quality at a reasonable price
Native in: German
Works in: English to German, German to English, German, and 1 more.
must pay (the costs) of introducing/soliciting a rival proxy
must pay (the costs) of distributing/disseminating/ a rival proxy (= sending out rival proxy materials = ballot cards, etc. to the shareholders)
http://www.thevaluealliance.com/PDF/CGADigest021704.pdf
sending out proxy materials
http://www.rtco.com/newsletter/2007_4_Winter.pdf
Overview
SEC regulations require proxy materials be distributed to all
shareholders, registered and beneficial, at the expense of the
issuer. Beneficial shareholders aren’t actually stockholders of
the issuer, but are holders of a package of beneficial rights
passed through by the actual registered holder, the broker or
broker’s nominee.As a result of this arrangement and SEC and
NYSE regulations, brokers get to distribute shareholder-meeting
materials at the expense of the issuer. How these
“fees” and expenses are determined and the equity of this
arrangement has long been a subject of debate.The NYSE has
taken a price-fixing role, setting certain “maximum fees” that
can be charged. However, additional service fees and non-negotiated
postal savings that are shared gross up the total
This is an example, where the control really stays with the board:
http://media.corporate-ir.net/media_files/irol/11/112761/200...
Your proxy is solicited by the Board.The Company pays the cost of soliciting your proxy and reimburses brokers and others
for forwarding you the proxy statement,proxy card,and Annual Report to Shareholders.
VOTING INFORMATION
Who may vote?You may vote if you were the holder of record of Shares at the close of business on April 5,2007.You are
entitled to one vote on each matter presented at the 2007 Annual Shareholders ’Meeting for each Share you owned on that date.If
your Shares are held in “street name ”through a bank,broker,or other nominee,you must obtain a proxy,executed in your favor,
from the holder of record as of the close of business on April 5,2007,to be able to vote at the meeting.As of March 30,2007,
Wal-Mart had 4,121,668,519 Shares outstanding.
--------------------------------------------------
Note added at 18 hrs (2007-12-15 15:34:51 GMT) Post-grading
--------------------------------------------------
corr.: must pay for the costs of introducing/soliciting a rival proxy (without parentheses) or must pay for...
http://www.thevaluealliance.com/PDF/CGADigest021704.pdf
sending out proxy materials
http://www.rtco.com/newsletter/2007_4_Winter.pdf
Overview
SEC regulations require proxy materials be distributed to all
shareholders, registered and beneficial, at the expense of the
issuer. Beneficial shareholders aren’t actually stockholders of
the issuer, but are holders of a package of beneficial rights
passed through by the actual registered holder, the broker or
broker’s nominee.As a result of this arrangement and SEC and
NYSE regulations, brokers get to distribute shareholder-meeting
materials at the expense of the issuer. How these
“fees” and expenses are determined and the equity of this
arrangement has long been a subject of debate.The NYSE has
taken a price-fixing role, setting certain “maximum fees” that
can be charged. However, additional service fees and non-negotiated
postal savings that are shared gross up the total
This is an example, where the control really stays with the board:
http://media.corporate-ir.net/media_files/irol/11/112761/200...
Your proxy is solicited by the Board.The Company pays the cost of soliciting your proxy and reimburses brokers and others
for forwarding you the proxy statement,proxy card,and Annual Report to Shareholders.
VOTING INFORMATION
Who may vote?You may vote if you were the holder of record of Shares at the close of business on April 5,2007.You are
entitled to one vote on each matter presented at the 2007 Annual Shareholders ’Meeting for each Share you owned on that date.If
your Shares are held in “street name ”through a bank,broker,or other nominee,you must obtain a proxy,executed in your favor,
from the holder of record as of the close of business on April 5,2007,to be able to vote at the meeting.As of March 30,2007,
Wal-Mart had 4,121,668,519 Shares outstanding.
--------------------------------------------------
Note added at 18 hrs (2007-12-15 15:34:51 GMT) Post-grading
--------------------------------------------------
corr.: must pay for the costs of introducing/soliciting a rival proxy (without parentheses) or must pay for...
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