Anne Sheehan and Darla C. Stuckey are Co-Chairs of The Best Practices Committee for Shareowner Participation in Virtual Annual Meetings. This post is based on a report by The Best Practices Committee for Shareowner Participation in Virtual Annual Meetings. The Committee consists of interested constituents, comprised of retail and institutional investors, public company representatives, and proxy and legal service providers.
State laws require companies to hold annual meetings of their shareowners to elect directors and to allow their shareowners to vote on matters in which a vote by shareowners is required for approval. In that context shareowners may be permitted to ask questions about items on the ballot prior to voting. The annual meeting often also serves as an opportunity for management to update the company’s shareowners on company developments and to review the company’s performance. It also can be an opportunity for shareowners to ask questions of management and directors about the business of the company if they wish to do so. It is generally accepted that shareowner participation should be welcomed and encouraged at a company’s annual meeting of shareowners.
