A shareholder proposal is a document created by one or more shareholders of a particular company to submit it in the company’s annual general meeting with a definite purpose. The company’s management can include the proposal in the proxy statement during the meeting if the proposal content is made known earlier and this way other shareholders get a chance to vote for or against the shareholder proposal in the meeting. The content of the shareholder proposal usually deals with matters like management compensation, a particular policy, voting rights etc. Shareholders who have 1% stock in the company’s shares for one year at least can submit a proposal.
Sample Shareholder Proposal:
Proposal submitted by: Karen Armstrong
Address: 533 Kemper Avenue, Oakland
Proposal prepared on: February 12, 2012
Proposal submitted to: Jonathan Jennings
President, Kane Capital
Address: 420 Kendalwood Lane, Oakland
Proposal submitted on: February 14, 2012
Proposal name: Increase corporate charitable contribution by 2%
Purpose: The primary purpose of creating this proposal is to convince the management that the company’s charitable contributions may be increased by 2% annually
Details of Shareholder Proposal:
- The company’s profits have increased by 22% this financial year and the corporate contribution to charity can be increased by at least 2%
- This will not only improve the company’s image but also help us contribute towards the society
- A corporate charity body will be created headed by one of the management members in order to supervise and keep track of the charitable contributions
- The money will be given in donations as a lump sum amount.
Funds requested: $50,000
