Governor Markell of
The bill allows corporate bylaws to provide for the company to include board nominees of dissident shareholders on the corporation's proxy materials. It also allows the bylaws to provide for the corporation to reimburse dissidents for their proxy contest costs. Seems like this update would please activist investors, who would save considerable time and money on proxy contests, and receive the same financial support that incumbent directors receive in their board campaigns. At the same time the law allows corporations to impose various conditions on proxy access, such as minimum size and term of share ownership, disclosures about the shareholder, and limits on the percentage of shares the dissident can own.
Still, the amendments don't change all that much, at least relative to current
Posted by Michael Levin. Michael is with Hedge Fund Solutions and is a regular contributor to this blog. Contact Michael at email@example.com.