What Happens When Individual Investors Lose Their VoicesIndividual investors are increasingly losing their voices (via proxy or in person) in crucial shareholder voting matters. The reason for this under-representation has nothing to do with anything as exciting as deceptive business practices or secret votes. It's just that fewer individual shareholders are choosing to return their proxies.
This lack of return creates many dilemmas for companies that wish to proceed with the voting process. After all, for voting to take place it is necessary to reach a quorum, which is the number of shareholder and/or proxy votes that are required to conduct business (typically a majority of the shareholders). If a quorum cannot be reached due to lack of votes then many times the Ten-Day Rule can be utilized.
The Ten-Day Rule allows brokers to vote proxies for shareholders who have not turned in their votes ten days prior to a meeting at which voting will take place. This rule can only be applied to routine matters, which provides an ambiguity that is quickly being defined and amended.
Non-routine issues such as equity compensation plans must be voted on by shareholders. Soon there may be Election Contest Rules enacted that would require shareholders, not brokers to vote in controversial director elections or when there is a recommendation for an Election Contest as well.
Serious problems for companies are caused when individual proxies are not returned and the Ten-Day Rule is not applicable. Individual investors and brokers both tend to vote on behalf of the company management, but institutional investors don't always have the management's best interest in mind. They do however always return their proxies. This can give them over-representation in the voting processes and unfair control of the companies.
Why the Indifference to Voting among Individual Investors?
There are many possible reasons why individual investors are not returning their proxies in the numbers that they used to. These investors may not realize the importance of their votes. They may be too bogged down by paper work and short on time to bother with it. They may be concerned that their votes could effect their standing in the company or they may harbor other privacy worries.
Many could find the wording of the ballots filled with industry jargon and hard to understand. Some may believe that others would do the job for them. The reasons for not sending in proxies are as unique as the individual shareholders themselves.
How to Improve Proxy Returns
What can be done to encourage individual investors to vote on their behalf? Well thought-out communication and educational campaigns designed to call shareholders to action can help.
Battle plans must be devised to educate company shareholders on the importance of and the value of their votes. Companies need to communicate this message to individual investors in an inviting format that is filled with language that is to the point and easy to comprehend.
Getting individual investors to want to read and learn about the value of their vote is the crucial element in getting them involved the voting process.
Thankfully, there are resources available to assist in educating and informing individual investors of company goings-on. Both shareholder services agents and transfer agent companies, such as First American Stock, serve to strengthen the communication and understanding between shareholders and the public companies that they are investing in.
|5 Good Reasons to Get a Masters
Accounting continuing education useful information
An Internet Business Education
An Overview Of The Better
Apa Continuing Education
Are Accredited Online Colleges
Business Executives Meet The Demand
Business School Excellence In Business
Changing Your Everyday Through
Comboapp Introduces Purely Scalable
Continuing Education Online
Continuing Education Something for Everyone Education
Continuing Education for Counselors Benefits
Counseling Continuing Education Requirements
Does Free Continuing Education
Experience The Convenience That
Get Finance For A Business Education
How Online Training is Changing
How To Become A Florida
Insurance Continuing Education Online LTCI
Keep Abreast Of Your Online
Learn More about Concepts
Making Or Selling Business Versus
Management Continuing Education for Professional Engineers
Massage Therapy Continuing Education Will
Mental Health Continuing Education Degree For Prevention
Mental Health Continuing Education Options
Nursing Continuing Education A Must Have
Nursing Continuing Education Courses
Nursing Continuing Education Facts Education
Online Driver Education Vs In class
Online Driver’s Education A Convenient
Psychology Continuing Education Classes
Psychology Continuing Education Courses
Psychology Continuing Education For Teachers
Reasons To Take Continuing Education
Role Of India Ngo In Imparting
Social Work Continuing Education Information
Stay Current With Nursing
The Importance Of A Quality
Using Continuing Education Loans to Help
Where Can I Get Free
Work From Home Moms And Continuing
Your Resume Education Section Top Or Bottom
All In The Family Australia Must Meet Its Obligations Bidding For The 2012 Summer Olympic Bingaman Quitting From Congress Brace For A Re rating Case Study Increasing The Popularity ( Or Votes) Celebrities And Bidets Circle Of Fame Ring Boulevard
Communicating Democrats Agenda Dr Rodney Howard Browne And The Great Election Candidates And How To Win A Election Results And Television Expect Instant Results With Gay Conservatives General Election 2010 – Castle Get Sirius With Howard Stern Hello Scott Brown Goodbye Filibuster Howard County Real Estate
New Jersey Breaks Record Obama Narrows Gap Clinton Obama Polls Can They Part 3 Asset Protection General limited Rocking The Vote Makes Everyone Win Shake The Dust From Off Thy Feet Social Bookmarking Sites Significance Sun Protection For Everyone The 2006 Elections What The Different Types Of Delaware The Followers Safe System By Rodney The Howard Stern Podcast Problem The Nation Votes To Bring Back The Potential Of Ps3 Games Console The Top 10 Most Think It Over By Rodney Trust Protector The Powers Voting Machine Voting Process What Do You Want What Happens When Individual Investors Where can I travel in South Will Healthcare Reform Cost Democrats Will The Real Barack
A Career in Restaurant Management Careers A Effective Catering Firms A Fresh Perspective towards Chinese Apple iPad for restaurants Are you looking for Buffets Boost Your Hotel Business With Reservation Boost your bottom line Business Software Adding Efficiency To Business Catering Software Makes Every Aspect of Running Celebration catering small business Entertainment Corporate Catering Ideas for Your Next Event Software gives event Get Wonderful Experience With Offsite Catering Healthy Restaurant Choices Eating Nutritious Meals Hotel Reservation Software Computers Software Hotel Reservation Software Give New Meaning Hotel Reservation Software Instant Hotel Reservation Software One Software Multiple Hotel Reservation Software One Software How To Open A Restaurant How the Catering Softwares How to Develop Your Restaurant Importance of Hotel Reservation Indian Food Restaurants Revival Kids Eat Free Restaurants Know About the Facilities One Piece of Software that any Hotel Online Hotel Reservation Software for Efficient Online Restaurant Management Career Training Options Opening A Restaurant 7 Vital Opening A Restaurant Business 3 Important Party Catering Food Premium Catering Caterer Ideas on Deciding Reasons for Buffet Catering Singapore Restaurant Catering Software Find Excellent Restaurant Restaurant POS software Fort Restaurant Reservation System A CustomerS Selecting a Fantastic Industrial Cleansing Assistance Special Upcoming Events at Restaurants The Advantages you can Get from The Popularity of Restaurant The Significance Of A Good Catering The way the Catering Softwares Are Supporting Tips About Discovering the Right Tips on How to Start a Restaurant Tourism Administration Reflects Canadas Tourism Try Catering Software in Your Catering Understand the Online Advertising Strategies for Your
All rights Reserved © 2007-2011.