Limiting Shareholder Proposals: Focus on Financial Returns
This new law aims to limit the number of proposals shareholders can submit at company meetings. These changes are intended to ensure companies only consider proposals directly impacting their financial performance, rather than social or environmental goals. For citizens, this means company decisions might become more profit-focused, potentially affecting their investments and overall corporate policies.
Key points
Companies will be required to include fewer shareholder proposals at annual meetings, depending on their size.
Shareholder proposals must have a "material effect" on the company's financial performance, excluding social, environmental, or political objectives.
Company management will determine which proposals are included, and the order of receipt will not matter.
Introduced
Citizen Poll