A aktionär proposal can be described as nonbinding submission to the company’s board of directors and management that asks for an action. Shareholders are able to use proposals to advocate for that variety of issues, including business compensation and environmental, interpersonal and governance (ESG) worries. Often , this kind of proposals give a strong sign that the issue is important enough for shareholders to weigh in on, even if the resulting political election is not binding.
In recent years, businesses currently have struggled to perfectly keep up with the volume of aktionär proposals filed. According to the SEC, a single pitch could cost a company an average of $100, 000—a cost that is certainly ultimately paid for by shareholders.
The Investments and Exchange Commission lately proposed changes to Rule 14a-8, which will sets certain requirements for processing shareholder plans. These changes would impose heightened membership requirements, require even more disclosures and limit the number of plans that a person can give to one every meeting.
Plans are a important program for traders and provide three key functions: check the actions of conflicted owners, facilitate Home Page shareholder democracy and promote beneficial disclosure and by using information. Beneath the current guidelines, to qualify for a aktionär proposal, a shareholder need to continuously keep at least $2, 000 in their market value or 1% of a company’s securities eligible for vote for at least one full year at the time of submissions.
The SEC’s proposed procedure would redact this necessity by needing that investors state all their intent to discuss with the company, the business days and occasions when they are available to take some action, and the specific issues where they want to talk about the matter. These requirements would ensure that shareholders truly care about the subject matter of their particular proposal and have the capacity to take part in meaningful conversation with the firm.