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Volumn 84, Issue 4, 2009, Pages 1259-1308

The future of shareholder democracy

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EID: 70349131977     PISSN: 00196665     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Review
Times cited : (36)

References (466)
  • 1
    • 70349094261 scopus 로고    scopus 로고
    • Comment: corporate governance andthe "D-Word"
    • 1587
    • See Thomas W. Joo, Comment: Corporate Governance andthe "D-Word", 63 WASH. & LEE L. REV. 1579, 1587 (2006);
    • (2006) Wash. Lee L. Rev. , vol.63 , pp. 1579
    • Joo, T.W.1
  • 2
    • 60749113865 scopus 로고    scopus 로고
    • The seductive comparison of shareholder and civic democracy
    • 1390
    • Usha Rodrigues, The Seductive Comparison of Shareholder and Civic Democracy, 63 WASH. & LEE L. REV. 1389, 1390 (2006).
    • (2006) Wash. Lee L. Rev. , vol.63 , pp. 1389
    • Rodrigues, U.1
  • 3
    • 70349151983 scopus 로고    scopus 로고
    • Shareholders as proxies: The contours of shareholder democracy
    • 1509-10 explaining competing conception of shareholder democracy
    • But see Dalia Tsuk Mitchell, Shareholders as Proxies: The Contours of Shareholder Democracy, 63 WASH. & LEE L. REV. 1503, 1509-10 (2006) (explaining competing conception of shareholder democracy).
    • (2006) Wash. & Lee L. Rev. , vol.63 , pp. 1503
    • Mitchell, D.T.1
  • 4
    • 84888487412 scopus 로고    scopus 로고
    • As this Article was going to press, Delaware's governor signed into law Delaware House Bill No. 19, which amends the Delaware General Corporation Law by adding a new section 112 providing, among other things, that a corporation may adopt (but is not required to adopt) a bylaw allowing individuals nominated by stockholders to be included on the corporation's proxy statement, and that the corporation may subject such inclusion to any lawful procedures and conditions.
    • As this Article was going to press, Delaware's governor signed into law Delaware House Bill No. 19, which amends the Delaware General Corporation Law by adding a new section 112 providing, among other things, that a corporation may adopt (but is not required to adopt) a bylaw allowing individuals nominated by stockholders to be included on the corporation's proxy statement, and that the corporation may subject such inclusion to any lawful procedures and conditions.
  • 5
    • 70349162222 scopus 로고    scopus 로고
    • H.B. 19, 145th Del.
    • See H.B. 19, 145th Gen. Assem, Reg. Sess. (Del. 2009)
    • (2009) Gen. Assem, Reg. Sess.
  • 6
    • 84888534153 scopus 로고    scopus 로고
    • note
    • This new section makes clear that Delaware corporations can include a proxy access provision in thenbylaws, though it falls short of requiring proxy access.
  • 7
    • 84888573111 scopus 로고    scopus 로고
    • See id.
    • See id.
  • 8
    • 84888571229 scopus 로고    scopus 로고
    • See Securities Exchange Act of 1934 Rule 14a-3,17 C.F.R. § 240.14a-3 2007 The proxy statement is a statement containing information about the candidates to be voted on.
    • See Securities Exchange Act of 1934 Rule 14a-3,17 C.F.R. § 240.14a-3 (2007). The proxy statement is a statement containing information about the candidates to be voted on.
  • 9
    • 84888496706 scopus 로고    scopus 로고
    • Sec to look outside ballot on proxy access
    • Jan.
    • See Karey Wutkowski, SEC to Look Outside Ballot on Proxy Access, REUTERS, Jan. 4, 2008,http://www.reuters.com/articlePrint?articleId=USN1741224720080104.
    • (2008) Reuters , vol.4
    • Wutkowski, K.1
  • 10
    • 84888490218 scopus 로고    scopus 로고
    • See Securities Exchange Act of 1934 Rule 14a-8,17 C.F.R. §240.14a-8(i)(8) (2007) providing exclusions for shareholder proposals related to election of directors
    • See Securities Exchange Act of 1934 Rule 14a-8,17 C.F.R. §240.14a-8(i)(8) (2007) (providing exclusions for shareholder proposals related to election of directors).
  • 11
    • 84888537216 scopus 로고    scopus 로고
    • See infra Part IIA describing historical efforts to gain access to the proxy statement
    • See infra Part IIA (describing historical efforts to gain access to the proxy statement).
  • 12
    • 84888487528 scopus 로고    scopus 로고
    • See Shareholder Proposals Relating to the Election of Directors, Exchange Art Release No. 914
    • See Shareholder Proposals Relating to the Election of Directors, Exchange Art Release No. 56,914,
    • , vol.56
  • 13
    • 84888539431 scopus 로고    scopus 로고
    • Investment Company Act Release No. 28, 075, 72 Fed. Reg. 70, 450, 70, 453 (Dec. 11, 2007) [hereinafter 2007 Final Shareholder Proposal Rule]
    • Investment Company Act Release No. 28, 075, 72 Fed. Reg. 70, 450, 70, 453 (Dec. 11, 2007) [hereinafter 2007 Final Shareholder Proposal Rule] .
  • 14
    • 84888562287 scopus 로고    scopus 로고
    • See, e.g., Wutkowski, supra note 4 quoting former SEC Chairman Harvey Pitt
    • See, e.g., Wutkowski, supra note 4 (quoting former SEC Chairman Harvey Pitt).
  • 15
    • 84888529936 scopus 로고    scopus 로고
    • note
    • For a debate regarding the propriety of increasing shareholder power,
  • 16
    • 33646431446 scopus 로고    scopus 로고
    • Director primacy and shareholder dbempowerment
    • 1746 hereinafter Bainbridge, Director Primacy
    • see Stephen Bainbridge, Director Primacy and Shareholder Dbempowerment, 119 HARV. L. REV. 1735, 1746 (2005) [hereinafter Bainbridge, Director Primacy];
    • (2005) Harv. L. Rev. , vol.119 , pp. 1735
    • Bainbridge, S.1
  • 17
    • 33645144214 scopus 로고    scopus 로고
    • The Case for Limited Shareholder Voting Rights
    • 624 hereinafter Bainbridge, Shareholder Voting Rights
    • Stephen Bainbridge, The Case for Limited Shareholder Voting Rights, 53 UCLAL. REV. 601, 624 (2006) [hereinafter Bainbridge, Shareholder Voting Rights];
    • (2006) Uclal. Rev. , vol.53 , pp. 601
    • Bainbridge, S.1
  • 18
    • 13244272076 scopus 로고    scopus 로고
    • The case for increasing shareholder power
    • 833
    • Lucian Arye Bebchuk, The Case for Increasing Shareholder Power, 118 HARV. L. REV. 833, 851 (2005).
    • (2005) Harv. L. Rev. , vol.118 , pp. 851
    • Bebchuk, L.A.1
  • 19
    • 84888576587 scopus 로고    scopus 로고
    • note
    • For a discussion of shareholders' historical role in the corporation,
  • 20
    • 84888548004 scopus 로고    scopus 로고
    • seeMitchell, supra note 1.
    • see Mitchell, supra note 1.
  • 21
    • 84888523570 scopus 로고    scopus 로고
    • note
    • This Article does not seek to address the normative question of whether increasing shareholder power is appropriate. Instead, this Article presumes the propriety ofthat increase, and focuses on the best mechanism for achieving it.
  • 22
    • 70349135693 scopus 로고
    • A.2d 651, Del. Ch.
    • See Blasius Indus., Inc. v. Atlas Corp., 564 A.2d 651, 659 (Del. Ch. 1988);
    • (1988) Inc. V. Atlas Corp. , vol.564 , pp. 659
    • Indus, B.1
  • 23
    • 84888527907 scopus 로고    scopus 로고
    • Bebchuk, supra note 9, at 851
    • Bebchuk, supra note 9, at 851 ;
  • 24
    • 70349155251 scopus 로고    scopus 로고
    • Taking shareholder rights seriously
    • 607
    • Julian Velasco, Taking Shareholder Rights Seriously, 41 U.C. DAVIS L. REV. 605, 607 (2007).
    • (2007) U.C. Davis L. Rev. , vol.41 , pp. 605
    • Velasco, J.1
  • 25
    • 70349148412 scopus 로고    scopus 로고
    • Shareholders have the power to bring suit against directors for breaching their duty owed to shareholders and the corporation
    • ch. 7, subch. D describing derivative proceedings However, there are significant procedural and substantive hurdles to such suits that may impair the ability ofthat power to ensure managerial accountability.
    • Shareholders have the power to bring suit against directors for breaching their duty owed to shareholders and the corporation. See, e.g., MODEL Bus. CORP. ACT, ch. 7, subch. D (2007) (describing derivative proceedings). However, there are significant procedural and substantive hurdles to such suits that may impair the ability ofthat power to ensure managerial accountability.
    • (2007) Model Bus. Corp. Act
  • 26
    • 0642335601 scopus 로고
    • Searching for the corporation's voice in derivative suit litigation: a critique of zapata the ali project
    • See James D. Cox, Searching for the Corporation's Voice in Derivative Suit Litigation: A Critique of Zapata & the ALI Project, 1982 DUKE L.J. 959, 960;
    • (1982) Duke L.J. , vol.959 , pp. 960
    • Cox, J.D.1
  • 27
    • 0009982070 scopus 로고
    • The role of liability rules and the derivative suit in corporate law: a theoretical and empirical analysb
    • 286 noting that the overall effect of the legal rules regarding derivative suits is to deemphasize the role of liability rules in conforming managerial behavior
    • Daniel R. Fischel & Michael Bradley, The Role of Liability Rules and the Derivative Suit in Corporate Law: A Theoretical and Empirical Analysb, 71 CORNELL L. REV. 261, 286 (1986) (noting that the overall effect of the legal rules regarding derivative suits is to deemphasize the role of liability rules in conforming managerial behavior);
    • (1986) Cornell L. Rev. , vol.71 , pp. 261
    • Fischel, D.R.1    Bradley, M.2
  • 28
    • 70349159754 scopus 로고
    • Prabe of Derivative Suits: A Commentary on the Paper of Professors Fbchel and Bradley
    • 322
    • Donald E. Schwartz, In Prabe of Derivative Suits: A Commentary on the Paper of Professors Fbchel and Bradley, 71 CORNELL L. REV. 322, 339-40 (1986).
    • (1986) Cornell L. Rev. , vol.71 , pp. 339-340
    • Schwartz, D.E.1
  • 29
    • 84888476851 scopus 로고    scopus 로고
    • note
    • Shareholders also have the right to sell their shares. This so-called exit right has been viewed by some as particularly important because it facilitates the market for corporate control by enabling the displacement of poorly performing managers.
  • 30
    • 0004036363 scopus 로고
    • However, scholars have pointed out that the market for corporate control is imperfect.
    • See ROBERT C. CLARK, CORPORATE LAW 95 (1986). However, scholars have pointed out that the market for corporate control is imperfect.
    • (1986) Corporate law , pp. 95
    • Clark, R.C.1
  • 31
    • 84917022798 scopus 로고
    • Regulating the market for corporate control: a critical assessment of the tender offer's role in corporate governance
    • 1145, noting that even when shareholders sell their shares and attendant voting rights, management often remains in power after the takeover
    • See John Coffee, Regulating the Market for Corporate Control: A Critical Assessment of the Tender Offer's Role in Corporate Governance, 84 COLUM. L. REV. 1145, 1211-12 (1984) (noting that even when shareholders sell their shares and attendant voting rights, management often remains in power after the takeover);
    • (1984) Colum. L. Rev. , vol.84 , pp. 1211-1212
    • Coffee, J.1
  • 32
    • 70349147652 scopus 로고
    • Compensation, deterrence and the market as boundaries for derivative suit procedures
    • 745, noting that while hostile takeovers may be effective for grossly abusive management, derivative suits are the only real means to deal with single breaches of fiduciary duty
    • James D. Cox, Compensation, Deterrence and the Market as Boundaries for Derivative Suit Procedures, 52 GEO. WASH. L. REV. 745, 752-53 (1984) (noting that while hostile takeovers may be effective for grossly abusive management, derivative suits are the only real means to deal with single breaches of fiduciary duty).
    • (1984) Geo. Wash. L. Rev. , vol.52 , pp. 752-753
    • Cox, J.D.1
  • 33
    • 84888554886 scopus 로고    scopus 로고
    • Blasius, 564 A.2d at 659 noting that the shareholder voting right represents a critical underpinning of corporate power
    • See Blasius, 564 A.2d at 659 (noting that the shareholder voting right represents a critical underpinning of corporate power);
  • 34
    • 84888566337 scopus 로고    scopus 로고
    • Stokes v. Cont'l Trust Co., 78 N.E. 1090,1093 (N. Y. 1906) noting that shareholders' power to vote is vital
    • Stokes v. Cont'l Trust Co., 78 N.E. 1090,1093 (N. Y. 1906) (noting that shareholders' power to vote is vital).
  • 35
    • 84888477130 scopus 로고    scopus 로고
    • note
    • These fundamental transactions include approving amendments to the corporation's charter and approving mergers, major asset sales, and dissolutions.
  • 36
    • 68949168672 scopus 로고    scopus 로고
    • tit. 8, §§242 (amendments to certificate of incorporation), 251 (mergers), 271 (sale of assets), 275(c) (dissolutions)
    • See, e.g., DEL. CODE ANN. tit. 8, §§242 (amendments to certificate of incorporation), 251 (mergers), 271 (sale of assets), 275(c) (dissolutions) (2007);
    • (2007) Del. Code Ann.
  • 37
    • 70349135303 scopus 로고    scopus 로고
    • 10.03(b) (articles of incorporation), 11.04(b) (mergers), 12.02(a) (disposition of assets), 14.02(e) (dissolution)
    • MODEL Bus. CORP. ACT §§ 10.03(b) (articles of incorporation), 11.04(b) (mergers), 12.02(a) (disposition of assets), 14.02(e) (dissolution) (2007).
    • (2007) Model Bus. Corp. Act §§
  • 38
    • 68949168672 scopus 로고    scopus 로고
    • tit. 8, § requiring corporations to be managed by or under the direction of the board of directors
    • See DEL. CODE ANN. tit. 8, §141 (2007) (requiring corporations to be managed by or under the direction of the board of directors);
    • (2007) Del. Code Ann. , pp. 141
  • 40
    • 70349134146 scopus 로고
    • 189 N.E. 234, 236 N.Y. prohibiting shareholders from making agreements to elect officers and to interfere with discretion of board
    • See McQuade v. Stoneham, 189 N.E. 234, 236 (N.Y. 1934) (prohibiting shareholders from making agreements to elect officers and to interfere with discretion of board).
    • (1934)
    • Stoneham, M.V.1
  • 41
    • 84888550385 scopus 로고    scopus 로고
    • See id
    • See id.
  • 42
    • 84888526793 scopus 로고    scopus 로고
    • See Bebchuk, supra note 9, at 851.
    • See Bebchuk, supra note 9, at 851.
  • 43
    • 84888510045 scopus 로고    scopus 로고
    • note
    • Corporate scholars refer to this divergence as an agency problem and note that much of corporate law is aimed at responding to this agency problem.
  • 45
    • 44649197264 scopus 로고
    • Theory ofthe firm: managerial behavior, agency costs, and ownership structure
    • 305
    • Michael C. Jensen & William H. Meckling, Theory ofthe Firm: Managerial Behavior, Agency Costs, and Ownership Structure, 3 J. FIN. ECON. 305, 309 (1976).
    • (1976) J. Fin. Econ , vol.3 , pp. 309
    • Jensen, M.C.1    Meckling, W.H.2
  • 46
    • 0346934193 scopus 로고    scopus 로고
    • A team production theory of corporate law
    • 247, noting that a director's role is more consistent with a trustee than that of an agent
    • But see Margaret M. Blair & Lynn A. Stout, A Team Production Theory of Corporate Law, 85 VA. L. REV. 247, 290-91 (1999) (noting that a director's role is more consistent with a trustee than that of an agent).
    • (1999) Va. L. Rev. , vol.85 , pp. 290-291
    • Blair, M.M.1    Stout, L.A.2
  • 47
    • 84888550210 scopus 로고    scopus 로고
    • Bebchuk, supra note 9, at 851.
    • See Bebchuk, supra note 9, at 851.
  • 48
    • 84888495823 scopus 로고    scopus 로고
    • Shareholder Proposals, Exchange Act Release No. 56,160, Investment Company Act Release No. 27, 913, 72 Fed. Reg. 43, 466, 43, 467 (proposed July 27, 2007) [hereinafter 2007 Shareholder Proposals] noting that a key right of shareholders is the right to appear at a shareholder meeting and advance proposals on which to vote, including proposals for nominating directorial candidates
    • See Shareholder Proposals, Exchange Act Release No. 56,160, Investment Company Act Release No. 27, 913, 72 Fed. Reg. 43, 466, 43, 467 (proposed July 27, 2007) [hereinafter 2007 Shareholder Proposals] (noting that a key right of shareholders is the right to appear at a shareholder meeting and advance proposals on which to vote, including proposals for nominating directorial candidates).
  • 49
    • 84888486065 scopus 로고    scopus 로고
    • CLARK, supra note 11, at 360.
    • See CLARK, supra note 11, at 360.
  • 50
    • 68949168672 scopus 로고    scopus 로고
    • tit 8, § authority to vote by proxy
    • See DEL. CODE ANN. tit 8, §212 (2007) (authority to vote by proxy).
    • (2007) Del. Code Ann. , pp. 212
  • 51
    • 33750894662 scopus 로고
    • From legitimacy to logic: reconstructing proxy regulation
    • 1129, noting that the main reason corporations solicit proxies is to satisfy state quorum rules
    • See Jill E. Fisch, From Legitimacy to Logic: Reconstructing Proxy Regulation, 46 VAND. L. REV. 1129, 1135 (1993) (noting that the main reason corporations solicit proxies is to satisfy state quorum rules).
    • (1993) Vand. L. Rev. , vol.46 , pp. 1135
    • Fisch, J.E.1
  • 52
    • 84888544542 scopus 로고    scopus 로고
    • Securities exchange act of 1934 regulation
    • 14A, 17 §240.14A
    • See Securities Exchange Act of 1934 Regulation 14A, 17 C.F.R. §240.14A (2007).
    • (2007) C.F.R.
  • 53
    • 84888564907 scopus 로고    scopus 로고
    • Securities exchange act of 1934 rule
    • 14a-3,17 §240.14a-3(a)
    • See Securities Exchange Act of 1934 Rule 14a-3,17 C.F.R. §240.14a-3(a) (2007).
    • C.F.R. , vol.2007
  • 54
    • 84888572739 scopus 로고    scopus 로고
    • note
    • When a proxy statement is made on behalf of an issuer in connection with the annual meeting involving the election of directors, the proxy statement must also be accompanied or preceded by an annual report.
  • 55
    • 84888523211 scopus 로고    scopus 로고
    • See 17 C.F.R. § 240.14a-3(b) 2007
    • See 17 C.F.R. § 240.14a-3(b) (2007).
  • 56
    • 84888563607 scopus 로고    scopus 로고
    • See 17 C.F.R. § 240.14a-3 2007
    • See 17 C.F.R. § 240.14a-3 (2007).
  • 57
    • 84888544542 scopus 로고    scopus 로고
    • Securities exchange act of 1934 rule
    • 14a-4, 17 § 240.14a-4(a)(2)
    • See Securities Exchange Act of 1934 Rule 14a-4, 17 C.F.R. § 240.14a-4(a)(2) (2007).
    • (2007) C.F.R.
  • 58
    • 26044463569 scopus 로고
    • Shareholder access to the proxy revbited
    • 37
    • See Jayne W. Barnard, Shareholder Access to the Proxy Revbited, 40 CATH. U. L. REV. 37, 56 (1990);
    • (1990) Cath. U. L. Rev. , vol.40 , pp. 56
    • Barnard, J.W.1
  • 59
    • 84888505163 scopus 로고    scopus 로고
    • Bebchuk, supra note 9, at 856
    • Bebchuk, supra note 9, at 856;
  • 60
    • 34250001205 scopus 로고    scopus 로고
    • The myth of the shareholder franchbe
    • 675, hereinafter Bebchuk, The Myth of the Shareholder Franchbe
    • Lucian A. Bebchuk, The Myth of the Shareholder Franchbe, 93 VA. L. REV. 675, 688 (2007) [hereinafter Bebchuk, The Myth of the Shareholder Franchbe].
    • (2007) Va. L. Rev , vol.93 , pp. 688
    • Bebchuk, L.A.1
  • 61
    • 84888528014 scopus 로고    scopus 로고
    • Securities exchange act of 1934ruie
    • 14a-8,17 § 240.14a-8
    • See Securities Exchange Act of 1934RuIe 14a-8,17 C.F.R. § 240.14a-8 (2007).
    • (2007) C.F.R.
  • 62
    • 84888550879 scopus 로고    scopus 로고
    • note
    • Those conditions encompass certain procedural requirements including that the shareholders must hold at least one percent or $2000 in market value of the securities entitled to vote at the meeting and must give notice ofthe proposal.
  • 63
    • 84888500566 scopus 로고    scopus 로고
    • See 17 C.F.R. § 240.14a-8
    • See 17 C.F.R. § 240.14a-8
  • 64
    • 84888548626 scopus 로고    scopus 로고
    • note
    • (b). In addition, the company must receive the proposal at its principal executive office no later than 120 calendar days before "the date of the company's proxy statement released to shareholders in connection with the previous year's annual meeting."
  • 65
    • 84888510337 scopus 로고    scopus 로고
    • 17 C.F.R. § 240.14a-8(e)2
    • - 17 C.F.R. § 240.14a-8(e)(2).
  • 66
    • 84888566131 scopus 로고    scopus 로고
    • note
    • Moreover, a shareholder may submit no more than one proposal per shareholders' meeting.
  • 67
    • 84888578986 scopus 로고    scopus 로고
    • See 17 C.F.R. § 240.14a-8
    • See 17 C.F.R. § 240.14a-8
  • 68
    • 70349153643 scopus 로고    scopus 로고
    • Getting wired at the sec: reforming the proxy process to account for new technologies
    • 79
    • (c); Adam G. Brimer, Getting Wired at the SEC: Reforming the Proxy Process to Account for New Technologies, 58 ALA. L. REV. 179, 185-86 (2006);
    • (2006) Ala. L. Rev. 1 , vol.58 , pp. 185-186
    • Brimer, A.G.1
  • 69
    • 33750882867 scopus 로고
    • The shareholder proposal rule: a failed experiment in merit regulation
    • 879
    • Alan R. Palmiter, The Shareholder Proposal Rule: A Failed Experiment in Merit Regulation, 45 ALA. L. REV. 879, 886 (1994).
    • (1994) Ala. L. Rev. , vol.45 , pp. 886
    • Palmiter, A.R.1
  • 70
    • 84888480490 scopus 로고    scopus 로고
    • See 17 C.F.R. § 240.14a-8(i)8
    • See 17 C.F.R. § 240.14a-8(i)(8).
  • 71
    • 84888577751 scopus 로고    scopus 로고
    • note
    • There are a variety of bases upon which a company may exclude a shareholder proposal, even if that proposal satisfies the procedural requirements of Rule 14a-8.
  • 72
    • 84888578518 scopus 로고    scopus 로고
    • See generally Palmiter, supra note 29, at 890-892 noting the most common bases used to exclude shareholder proposals
    • See generally Palmiter, supra note 29, at 890-892 (noting the most common bases used to exclude shareholder proposals).
  • 73
    • 84888534708 scopus 로고    scopus 로고
    • See Proposed Amendments to Rule 14a-8, Exchange Act Release No. 12,598, Investment Company Art Release No. 9343, 41 Fed. Reg. 29, 982, 29, 982 proposed July 7, 1976
    • See Proposed Amendments to Rule 14a-8, Exchange Act Release No. 12,598, Investment Company Art Release No. 9343, 41 Fed. Reg. 29, 982, 29, 982 (proposed July 7, 1976).
  • 74
    • 84888563022 scopus 로고    scopus 로고
    • Such exclusion also was designed to prevent the circumvention of disclosure requirements required by other aspects of the proxy rules. See Shareholder Proposal Relating to the Election of Directors, Exchange Act Release No. 56,161
    • Such exclusion also was designed to prevent the circumvention of disclosure requirements required by other aspects of the proxy rules. See Shareholder Proposal Relating to the Election of Directors, Exchange Act Release No. 56,161,
  • 75
    • 84888564838 scopus 로고    scopus 로고
    • Investment Company Art Release No. 27, 914, 72 Fed. Reg. 43, 488, 43, 491 proposed July 27, 20072007 Shareholder Proposals, supra note 20, at 43, 469.
    • Investment Company Art Release No. 27, 914, 72 Fed. Reg. 43, 488, 43, 491 (proposed July 27, 2007); 2007 Shareholder Proposals, supra note 20, at 43, 469.
  • 76
    • 84888516740 scopus 로고    scopus 로고
    • See Bebchuk, The Myth of the Shareholder Franchbe, supra note 28, at 683 tbl.1.
    • See Bebchuk, The Myth of the Shareholder Franchbe, supra note 28, at 683 tbl.1.
  • 77
    • 84888520887 scopus 로고    scopus 로고
    • See Bebchuk, supra note 9, at 856.
    • See Bebchuk, supra note 9, at 856.
  • 78
    • 84888542249 scopus 로고    scopus 로고
    • note
    • See Reexamination of Rules Relating to Shareholder Communications, Shareholder Participation in the Corporate Electoral Process and Corporate Governance Generally, Exchange Art Release No. 13, 482,
  • 79
    • 84888505456 scopus 로고    scopus 로고
    • Investment Company Act Release No. 9740, 42 Fed. Reg. 23,901, 23, 902 (May 11,1977) [hereinafter Shareholder Participation].
    • Investment Company Act Release No. 9740, 42 Fed. Reg. 23,901, 23, 902 (May 11,1977) [hereinafter Shareholder Participation].
  • 80
    • 70349095727 scopus 로고
    • Access to the corporate proxy machinery
    • 1489, noting that 1969 estimates placed the cost of proxy fights at forty thousand to one million dollars
    • See Melvin Aron Eisenberg, Access to the Corporate Proxy Machinery, 83 HARV. L. REV. 1489, 1499 (1970) (noting that 1969 estimates placed the cost of proxy fights at forty thousand to one million dollars).
    • (1970) Harv. L. Rev. , vol.83 , pp. 1499
    • Eisenberg, M.A.1
  • 81
    • 70349085149 scopus 로고    scopus 로고
    • The Holy grail of corporate governance reform: independence or democracy?, 2007
    • See Bebchuk, The Myth of the Shareholder Franchbe, supra note 28, at 683;Etizabeth Cosenza
    • See Bebchuk, The Myth of the Shareholder Franchbe, supra note 28, at 683;Etizabeth Cosenza, The Holy Grail of Corporate Governance Reform: Independence or Democracy?, 2007 BYU L. REV. 1, 43 (2007).
    • (2007) Byu L. Rev. , vol.1 , pp. 43
  • 82
    • 84888524699 scopus 로고    scopus 로고
    • note
    • Shareholders are not entitled to reimbursement of their expenses associated with waging proxy contests.
  • 83
    • 70349137337 scopus 로고
    • Lucian arye bebchuk marcel kahan, a framework for analyzing legal policy towards proxy contests
    • 1071
    • See Lucian Arye Bebchuk & Marcel Kahan, A Framework for Analyzing Legal Policy Towards Proxy Contests, 78 CAL. L. REV. 1071, 1107-09 (1990).
    • (1990) Cal. L. Rev. , vol.78 , pp. 1107-1109
  • 84
    • 84888518621 scopus 로고    scopus 로고
    • note
    • Instead, shareholders may be reimbursed only if their costs are viewed as reasonable and the board approves the reimbursement. By contrast, incumbents have a right to be reimbursed for their expenses related to proxy contests so long as those expenses are reasonable.
  • 85
    • 84888502576 scopus 로고    scopus 로고
    • See id.
    • See id.
  • 86
    • 84888505371 scopus 로고    scopus 로고
    • Security Holder Director Nominations, Exchange Act Release No. 48, 626, Investment Company Act Release No. 26, 206, 68 Fed. Reg. 60, 784, 60, 786 (proposed Oct. 23, 2003) [hereinafter 2003 Proposed Nomination Rule] noting that recommendations to nominating committees are rarely effective
    • - 8. Security Holder Director Nominations, Exchange Act Release No. 48, 626, Investment Company Act Release No. 26, 206, 68 Fed. Reg. 60, 784, 60, 786 (proposed Oct. 23, 2003) [hereinafter 2003 Proposed Nomination Rule] (noting that recommendations to nominating committees are rarely effective).
  • 88
    • 84888501786 scopus 로고    scopus 로고
    • See 2007 Shareholder Proposals, supra note 20, at 43, 467; FRANKLIN BALOTTI JESSE FWKELSTEIN, DELAWARE LAWS OF CORPORATIONS AND BUSINESS ORGANIZATIONS §7.9 4th ed. 2006
    • See 2007 Shareholder Proposals, supra note 20, at 43, 467; FRANKLIN BALOTTI & JESSE FWKELSTEIN, DELAWARE LAWS OF CORPORATIONS AND BUSINESS ORGANIZATIONS §7.9 (4th ed. 2006).
  • 89
    • 84888509533 scopus 로고    scopus 로고
    • See Proposed Amendments to Rule 14a-8 Under the Securities Exchange Art of 1934 Relating to Proposals by Security Holders, Exchange Art Release No. 19, 135, Investment Company Art Release No. 12, 734, 47 Fed. Reg. 47, 420 (proposed Oct. 14, 1982) [hereinafter 1982 Proposed Shareholder Access Amendments]; Eisenberg, supra note 35, at 1505 noting that "the designation of candidates in the proxy materials is today's nomination"
    • See Proposed Amendments to Rule 14a-8 Under the Securities Exchange Art of 1934 Relating to Proposals by Security Holders, Exchange Art Release No. 19, 135, Investment Company Art Release No. 12, 734, 47 Fed. Reg. 47, 420 (proposed Oct. 14, 1982) [hereinafter 1982 Proposed Shareholder Access Amendments]; Eisenberg, supra note 35, at 1505 (noting that "the designation of candidates in the proxy materials is today's nomination").
  • 90
    • 84888552121 scopus 로고    scopus 로고
    • See Eisenberg, supra note 35, at 1504 noting that the inability to choose among various candidates makes the process of voting pro forma
    • See Eisenberg, supra note 35, at 1504 (noting that the inability to choose among various candidates makes the process of voting pro forma).
  • 91
    • 84888532734 scopus 로고    scopus 로고
    • Id
    • Id.
  • 92
    • 84888485715 scopus 로고    scopus 로고
    • See Bebchuk, supra note 9, at 856.
    • See Bebchuk, supra note 9, at 856.
  • 93
    • 84888535231 scopus 로고    scopus 로고
    • See Blair Stout, supra note 18, at 310 noting that shareholders' voting rights give them little or no control over directors
    • See Blair & Stout, supra note 18, at 310 (noting that shareholders' voting rights give them little or no control over directors).
  • 94
    • 84888518783 scopus 로고    scopus 로고
    • The myth of the shareholder franchise
    • Cf. Bebchuk
    • Cf. Bebchuk, The Myth of the Shareholder Franchise, supra note 28, at 688-690
    • Supra Note , vol.28 , pp. 688-690
  • 95
    • 84888500576 scopus 로고    scopus 로고
    • See Cosenza, noting that allowing for proxy access improves corporate monitoring
    • See Cosenza, supra note 36, at 42-43 (noting that allowing for proxy access improves corporate monitoring).
    • Supra Note , vol.36 , pp. 42-43
  • 96
    • 84888514445 scopus 로고    scopus 로고
    • The myth ofthe shareholder franchise
    • See Bebchuk, noting small number of challengers
    • See Bebchuk, The Myth ofthe Shareholder Franchise, supra note 28, at 687 (noting small number of challengers);
    • Supra Note , vol.28 , pp. 687
  • 97
    • 84888553220 scopus 로고    scopus 로고
    • id. at 691 noting costs of contests Indeed, hedge funds have increasingly wielded influence in proxy contests.
    • id. at 691 (noting costs of contests). Indeed, hedge funds have increasingly wielded influence in proxy contests.
  • 98
    • 84888555440 scopus 로고    scopus 로고
    • See Institutional s'holder servs., 2006 postseason report: spotlight on executive pay and board accountability 2 (2006) [hereinafter 2006 proxy report] report on file with the indiana law journal
    • See INSTITUTIONAL S'HOLDER SERVS., 2006 POSTSEASON REPORT: SPOTLIGHT ON EXECUTIVE PAY AND BOARD ACCOUNTABILITY 2 (2006) [hereinafter 2006 PROXY REPORT] (report on file with the Indiana Law Journal).
  • 99
    • 84888566468 scopus 로고    scopus 로고
    • See infra notes 92, 105 and accompanying text. For example, the two most recent proposals for shareholder access to the ballot would provide access to any shareholder or group of shareholders holding at least five percent of a company's securities for a period of one year. See infra notes 105, 123. However, some advocates have criticized this threshold as too onerous, particularly in light of the fact that the only requirement for submission of other proposals is that shareholders own $2000 worth of securities.
    • See infra notes 92, 105 and accompanying text. For example, the two most recent proposals for shareholder access to the ballot would provide access to any shareholder or group of shareholders holding at least five percent of a company's securities for a period of one year. See infra notes 105, 123. However, some advocates have criticized this threshold as too onerous, particularly in light of the fact that the only requirement for submission of other proposals is that shareholders own $2000 worth of securities.
  • 100
    • 84888552190 scopus 로고    scopus 로고
    • See riskmetrics group, 2007 postseason report: a closer look at accountability and engagement 16 (2007) [hereinafter 2007 proxy report]
    • See RISKMETRICS GROUP, 2007 POSTSEASON REPORT: A CLOSER LOOK AT ACCOUNTABILITY AND ENGAGEMENT 16 (2007) [hereinafter 2007 PROXY REPORT];
  • 101
    • 84888542983 scopus 로고    scopus 로고
    • see also 17 C.F.R. § 240.14a-8(b) (2007) noting shareholders must hold at least one percent or $2000 in market value of securities
    • see also 17 C.F.R. § 240.14a-8(b) (2007) (noting shareholders must hold at least one percent or $2000 in market value of securities).
  • 102
    • 84888504063 scopus 로고    scopus 로고
    • See Cosenza, supra note 36, at 42-43; Eisenberg, supra note 35, at 1504.
    • See Cosenza, supra note 36, at 42-43; Eisenberg, supra note 35, at 1504.
  • 103
    • 0011536823 scopus 로고
    • Shareholder passivity reexamined
    • 520, noting the view that "[c]ollective action problems make shareholder passivity inevitable"
    • See Bernard S. Black, Shareholder Passivity Reexamined, 89 MICH. L. REV. 520, 52628 (1990) (noting the view that "[c]ollective action problems make shareholder passivity inevitable").
    • (1990) Mich. L. Rev. , vol.89 , pp. 52628
    • Black, B.S.1
  • 104
    • 84888576850 scopus 로고    scopus 로고
    • See BERLE MEANS, supra note 18, at 81; Black, supra note 51, at 527.
    • See BERLE & MEANS, supra note 18, at 81; Black, supra note 51, at 527.
  • 105
    • 84888539618 scopus 로고    scopus 로고
    • See BERLE MEANS, supra note 18, at 81.
    • See BERLE & MEANS, supra note 18, at 81.
  • 106
    • 84888574619 scopus 로고    scopus 로고
    • See CLARK, supra note 11, at 390-91
    • See CLARK, supra note 11, at 390-91 ;
  • 107
    • 0040106877 scopus 로고
    • The corporate governance movement
    • 1259
    • Daniel R. Fischel, The Corporate Governance Movement, 35 VAND. L. REV. 1259, 1277 (1983).
    • (1983) Vand. L. Rev. , vol.35 , pp. 1277
    • Fischel, D.R.1
  • 108
    • 84888528051 scopus 로고    scopus 로고
    • See CLARK, supra note 11, at 392-93; Black, supra note 51, at 528; Fischel, supra note 54, at 1277.
    • See CLARK, supra note 11, at 392-93; Black, supra note 51, at 528; Fischel, supra note 54, at 1277.
  • 109
    • 84888572658 scopus 로고    scopus 로고
    • See 2007 PROXY REPORT, supra note 49, at 5-7.
    • See 2007 PROXY REPORT, supra note 49, at 5-7.
  • 110
    • 84888484311 scopus 로고    scopus 로고
    • See id. at 5.
    • See id. at 5.
  • 111
    • 84888557154 scopus 로고    scopus 로고
    • See id. at 26.
    • See id. at 26.
  • 112
    • 84888563247 scopus 로고    scopus 로고
    • See id. at 22. In 2007, thirty-four proxy fights went to vote, up from twenty-one contests in 2006. At least one group of shareholders prevailed in their fight, securing three board seats.
    • See id. at 22. In 2007, thirty-four proxy fights went to vote, up from twenty-one contests in 2006. At least one group of shareholders prevailed in their fight, securing three board seats.
  • 113
    • 84888512546 scopus 로고    scopus 로고
    • See id.
    • See id.
  • 114
    • 84888490299 scopus 로고    scopus 로고
    • See Bebchuk, supra note 9, at 877 noting that the shareholders' tendency to vote with management may result from rational deference to a party believed to be better informed
    • See Bebchuk, supra note 9, at 877 (noting that the shareholders' tendency to vote with management may result from rational deference to a party believed to be better informed).
  • 115
    • 84888566127 scopus 로고    scopus 로고
    • See id. at 880.
    • See id. at 880.
  • 116
    • 84888525490 scopus 로고    scopus 로고
    • 2007 PROXY REPORT, supra note 49, at 16.
    • - 2007 PROXY REPORT, supra note 49, at 16.
  • 117
    • 84888498112 scopus 로고    scopus 로고
    • See Hewlett-Packard Co., SEC No-Action Letter, 2007 WL 224970, at *1 (Jan. 22, 2007) noting that the SECs staff expressed no view on whether HP can exclude the proposal
    • See Hewlett-Packard Co., SEC No-Action Letter, 2007 WL 224970, at *1 (Jan. 22, 2007) (noting that the SECs staff expressed no view on whether HP can exclude the proposal).
  • 118
    • 70349134145 scopus 로고    scopus 로고
    • Hp investors reject 'proxy access '; proposal would have opened up board-nominating Process
    • Mar. at D02. The proposal received thirty-nine percent of the vote, but was later revised to forty-three percent.
    • See Tomoeh Murakami Tse, HP Investors Reject 'Proxy Access '; Proposal Would Have Opened up Board-Nominating Process, WASH. POST, Mar. 15, 2007, at D02. The proposal received thirty-nine percent of the vote, but was later revised to forty-three percent.
    • (2007) Wash. Post , vol.15
    • Tse, T.M.1
  • 119
    • 84888538259 scopus 로고    scopus 로고
    • Id
    • Id.
  • 120
    • 70349111639 scopus 로고    scopus 로고
    • The vote stemmed from a proposal submitted at unitedhealth group, which garnered 45.3% ofthe shareholder vote
    • supra note 49, at 16.
    • The vote stemmed from a proposal submitted at UnitedHealth Group, which garnered 45.3% ofthe shareholder vote. 2007 PROXY REPORT, supra note 49, at 16.
    • (2007) Proxy Report
  • 121
    • 84888522150 scopus 로고    scopus 로고
    • See id. describing vote at Cryo-Cell International, a small biotech firm
    • See id. (describing vote at Cryo-Cell International, a small biotech firm).
  • 122
    • 84888539294 scopus 로고    scopus 로고
    • See Tse, supra note 64.
    • See Tse, supra note 64.
  • 123
    • 84888560413 scopus 로고    scopus 로고
    • See 2007 PROXY REPORT, supra note 49, at 16.
    • See 2007 PROXY REPORT, supra note 49, at 16.
  • 124
    • 84888505137 scopus 로고    scopus 로고
    • See Tse, supra note 64.
    • See Tse, supra note 64.
  • 125
    • 84888560754 scopus 로고    scopus 로고
    • See Bainbridge, Director Primacy, supra note 9, at 1754
    • See Bainbridge, Director Primacy, supra note 9, at 1754;
  • 126
    • 84920431829 scopus 로고
    • Public pension fundactivbm in corporate governance reconsidered
    • 795
    • Roberta Romano, Public Pension FundActivbm in Corporate Governance Reconsidered, 93 COLUM. L. REV. 795, 81112 (1993).
    • (1993) Colum. L. Rev. , vol.93 , pp. 81112
    • Romano, R.1
  • 127
    • 84888494269 scopus 로고    scopus 로고
    • Financial innovation 2,20 vanderbilt univ
    • Frank S. Partnoy Research Paper Series, Paper No. 06-21, available at
    • See Frank S. Partnoy & Randall S. Thomas, Gap Filling, Hedge Funds, and Financial Innovation 2,20 (Vanderbilt Univ. Law Sch. Law & Econ. Research Paper Series, Paper No. 06-21, 2006), available at http://ssm.com/ abstract=931254.
    • (2006) Law Sch. Law Econ.
    • Thomas, R.S.1    Filling, G.2    Funds, H.3
  • 128
    • 84888476943 scopus 로고    scopus 로고
    • See id. at 24. but Partnoy and Thomas have found that hedge funds engage in a variety of activities, some of which are focused on more long-term strategies
    • See id. at 24. But Partnoy and Thomas have found that hedge funds engage in a variety of activities, some of which are focused on more long-term strategies.
  • 129
    • 84888554824 scopus 로고    scopus 로고
    • Id
    • Id.
  • 130
    • 84888501603 scopus 로고    scopus 로고
    • See id. at 49.
    • See id. at 49.
  • 131
    • 84888532755 scopus 로고    scopus 로고
    • See Bainbridge, Director Primacy, supra note 9, at 1754; Romano, supra note 70, at 811-12 noting the distinction between public and private funds and the pressure public funds face to focus on local and/or social issues
    • See Bainbridge, Director Primacy, supra note 9, at 1754; Romano, supra note 70, at 811-12 (noting the distinction between public and private funds and the pressure public funds face to focus on local and/or social issues);
  • 132
    • 70349090321 scopus 로고    scopus 로고
    • Realigning corporate governance: shareholder activbm by labor unions
    • 1018
    • Stewart J. Schwab & Randall S. Thomas, Realigning Corporate Governance: Shareholder Activbm by Labor Unions, 96 MlCH. L. REV. 1018, 1022-1023 (1998).
    • (1998) Mlch. L. Rev. , vol.96 , pp. 1022-1023
    • Stewart, J.1    Thomas, S.R.S.2
  • 133
    • 84888558274 scopus 로고    scopus 로고
    • See Bainbridge, Director Primacy, supra note 9, at 1754; Bebchuk, supra note 9, at 878.
    • See Bainbridge, Director Primacy, supra note 9, at 1754; Bebchuk, supra note 9, at 878.
  • 134
    • 84888551695 scopus 로고    scopus 로고
    • See Bebchuk, supra note 9, at 879-880
    • See Bebchuk, supra note 9, at 879-880
  • 135
    • 84888569533 scopus 로고    scopus 로고
    • See 2007 PROXY REPORT, supra note 49, at 20, 31 pinpointing shareholder proposals receiving strong, and in some cases, majority support
    • See 2007 PROXY REPORT, supra note 49, at 20, 31 (pinpointing shareholder proposals receiving strong, and in some cases, majority support).
  • 136
    • 84888503174 scopus 로고    scopus 로고
    • See id. at 44.
    • See id. at 44.
  • 138
    • 84888481513 scopus 로고    scopus 로고
    • See id. at 21.
    • See id. at 21.
  • 139
    • 84888561612 scopus 로고    scopus 로고
    • See id.
    • See id.
  • 140
    • 84888517100 scopus 로고    scopus 로고
    • See Partnoy Thomas, supra note 71, at 14-15; Schwab Thomas, supra note 74, at 1035-36,1082-1083 noting that shareholder proposals cannot succeed without the support of other shareholders, and that such support will not be forthcoming unless such proposals relate to issues that resonate with the majority of shareholders
    • See Partnoy & Thomas, supra note 71, at 14-15; Schwab & Thomas, supra note 74, at 1035-36,1082-1083 (noting that shareholder proposals cannot succeed without the support of other shareholders, and that such support will not be forthcoming unless such proposals relate to issues that resonate with the majority of shareholders).
  • 141
    • 70349085148 scopus 로고    scopus 로고
    • INStttutional s'holder servs.,Postseason report: corporate governance at a crossroads
    • hereinafter 2005
    • See INSTTTUTIONAL S'HOLDER SERVS., 2005 POSTSEASON REPORT: CORPORATE GOVERNANCE AT A CROSSROADS 10, 41 (2005) [hereinafter 2005 PROXY REPORT];
    • (2005) Proxy Report , vol.10 , pp. 41
  • 142
    • 70349123257 scopus 로고    scopus 로고
    • Nstitutional s 'holder servs.,postseason report: a new corporate governance world: from confrontation to constructive dialogue
    • hereinafter 2004
    • INSTITUTIONAL S 'HOLDER SERVS., 2004 POSTSEASON REPORT: A NEW CORPORATE GOVERNANCE WORLD: FROM CONFRONTATION TO CONSTRUCTIVE DIALOGUE 5,28 (2004) [hereinafter 2004 PROXY REPORT].
    • (2004) Proxy Report. , vol.5 , pp. 28
  • 143
    • 84888480062 scopus 로고    scopus 로고
    • Bebchuk, supra note 9, at 856-57. However, proxy access does promise indirect benefits that may influence corporate decision making.
    • Bebchuk, supra note 9, at 856-57. However, proxy access does promise indirect benefits that may influence corporate decision making.
  • 144
    • 84888506553 scopus 로고    scopus 로고
    • See id. at 878.
    • See id. at 878.
  • 145
    • 84888522383 scopus 로고    scopus 로고
    • But see Bainbridge, Shareholder Voting Rights, supra note 9, at 603-606 noting that any increase in managerial accountability necessarily limits managerial power
    • But see Bainbridge, Shareholder Voting Rights, supra note 9, at 603-606 (noting that any increase in managerial accountability necessarily limits managerial power).
  • 146
    • 84888490746 scopus 로고    scopus 로고
    • Securities Art Release No. 2887, Exchange Act Release No. 3347, Investment Company Art Release No. 417, 7 Fed. Reg. 10, 655, 10, 656 Dec. 18, 1942
    • Securities Art Release No. 2887, Exchange Act Release No. 3347, Investment Company Art Release No. 417, 7 Fed. Reg. 10, 655, 10, 656 (Dec. 18, 1942);
  • 147
    • 84888555449 scopus 로고    scopus 로고
    • see abo Barnard, supra note 28, at 54 n.102. The SEC also proposed a rale allowing shareholders to include a 100-word statement on the proxy statement opposing any management proposal-a predecessor to Rule 14a-8.
    • see abo Barnard, supra note 28, at 54 n.102. The SEC also proposed a rale allowing shareholders to include a 100-word statement on the proxy statement opposing any management proposal-a predecessor to Rule 14a-8.
  • 148
    • 84888577975 scopus 로고    scopus 로고
    • See Securities Act Release No. 2887, 7 Fed. Reg. at 10, 656; Barnard, supra note 28, at 47.
    • See Securities Act Release No. 2887, 7 Fed. Reg. at 10, 656; Barnard, supra note 28, at 47.
  • 149
    • 84888538447 scopus 로고    scopus 로고
    • See Barnard, supra note 28, at 54; Fisch, supra note 23, at 1163.
    • See Barnard, supra note 28, at 54; Fisch, supra note 23, at 1163.
  • 150
    • 84888521417 scopus 로고    scopus 로고
    • See Shareholder Participation, supra note 34, at 23, 901.
    • See Shareholder Participation, supra note 34, at 23, 901.
  • 151
    • 84888503435 scopus 로고    scopus 로고
    • See id . at 23, 903.
    • See id . at 23, 903.
  • 152
    • 84888499150 scopus 로고    scopus 로고
    • note
    • The question submitted for consideration was the following: "Should shareholders have access to management's proxy soliciting materials for the purpose of nominating persons of their choice to serve on the board of directors?" Id. The Release then posed questions about the process for such nomination.
  • 153
    • 84888532509 scopus 로고    scopus 로고
    • Id
    • Id.
  • 154
    • 84888531094 scopus 로고    scopus 로고
    • See 1982 Proposed Shareholder Access Amendments, supra note 41, at 47, 420.
    • See 1982 Proposed Shareholder Access Amendments, supra note 41, at 47, 420.
  • 155
    • 84888484219 scopus 로고    scopus 로고
    • See id. at 47, 421.
    • See id. at 47, 421.
  • 156
    • 84888550880 scopus 로고    scopus 로고
    • See id
    • See id.
  • 157
    • 84888506459 scopus 로고    scopus 로고
    • note
    • Shareholders would have to be a record or beneficial holder of at least one percent or $1000 in market value of an issuer's securities.
  • 158
    • 84888503183 scopus 로고    scopus 로고
    • Id.
    • Id.
  • 160
    • 84888560510 scopus 로고    scopus 로고
    • The SEC expected that any rales for such a plan would establish minimum limits on eligibility and the basis for exclusion of any shareholder proposals.
    • The SEC expected that any rales for such a plan would establish minimum limits on eligibility and the basis for exclusion of any shareholder proposals.
  • 161
    • 84888522434 scopus 로고    scopus 로고
    • See id.
    • See id.
  • 162
    • 84888497169 scopus 로고    scopus 로고
    • See id. In this regard, Proposal III would have been self-executing, thereby eliminating much ofthe SEC staff's participation in the shareholder proposal process. Id.
    • See id. In this regard, Proposal III would have been self-executing, thereby eliminating much ofthe SEC staff's participation in the shareholder proposal process. Id.
  • 163
    • 84888526220 scopus 로고    scopus 로고
    • Id.
    • Id.
  • 164
    • 84888545721 scopus 로고    scopus 로고
    • See Amendments to Rule 14a-8 Under the Securities Exchange Art of 1934 Relating to Proposals by Security Holders, Exchange Art Release No. 20, 091, 48 Fed. Reg. 38, 218, 38, 218 (Aug. 16, 1983) [hereinafter 1983 Final Rule] Final Rule
    • See Amendments to Rule 14a-8 Under the Securities Exchange Art of 1934 Relating to Proposals by Security Holders, Exchange Art Release No. 20, 091, 48 Fed. Reg. 38, 218, 38, 218 (Aug. 16, 1983) [hereinafter 1983 Final Rule] (Final Rule).
  • 165
    • 84888538990 scopus 로고    scopus 로고
    • See id
    • See id.
  • 166
    • 84888533505 scopus 로고    scopus 로고
    • See id.
    • See id.
  • 167
    • 84888499576 scopus 로고    scopus 로고
    • In fact, a substantial majority of commentators favored Proposal I. Id. Proponents believed that ensuring that shareholders had an economic stake in the company would curtail abuses of the rule. Id. at 38, 219. Interestingly, the adoption of Proposal I triggered sharp criticism from Commissioner Longstreth who believed that the additional procedural rules encompassed in the new amendments "[tilt] significantly and unnecessarily against shareholders seeking access to the proxy machinery." Id. at 38, 223. Commissioner Longstreth would have simply retained Rule 14a-8 in its then existing form.
    • In fact, a substantial majority of commentators favored Proposal I. Id. Proponents believed that ensuring that shareholders had an economic stake in the company would curtail abuses of the rule. Id. at 38, 219. Interestingly, the adoption of Proposal I triggered sharp criticism from Commissioner Longstreth who believed that the additional procedural rules encompassed in the new amendments "[tilt] significantly and unnecessarily against shareholders seeking access to the proxy machinery." Id. at 38, 223. Commissioner Longstreth would have simply retained Rule 14a-8 in its then existing form.
  • 168
    • 84888571371 scopus 로고    scopus 로고
    • Id.
    • Id.
  • 169
    • 84888499560 scopus 로고    scopus 로고
    • See Regulation of Communications Among Shareholders, Exchange Art Release No. 31,326
    • See Regulation of Communications Among Shareholders, Exchange Art Release No. 31,326,
  • 170
    • 84888498400 scopus 로고    scopus 로고
    • Investment Company Act Release No. 19, 031, 57 Fed. Reg. 48, 276, 48, 277 (Oct. 16, 1992) noting extensive three-year examination of proxy voting rales and procedures
    • Investment Company Act Release No. 19, 031, 57 Fed. Reg. 48, 276, 48, 277 (Oct. 16, 1992) (noting extensive three-year examination of proxy voting rales and procedures).
  • 171
    • 84888539523 scopus 로고    scopus 로고
    • See Fisch, supra note 23, at 1170.
    • See Fisch, supra note 23, at 1170.
  • 172
    • 84888512892 scopus 로고    scopus 로고
    • See 2003 Proposed Nomination Rule, supra note 38, at 60,784; Press Release, U.S. Securities Exchange Comm'n, Commission to Review Current Proxy Rules and Regulations to Improve Corporate Democracy, 2003-46 (Apr. 14,2003), available at http://www.sec.gov/news/press/2003-46.htm.
    • See 2003 Proposed Nomination Rule, supra note 38, at 60,784; Press Release, U.S. Securities & Exchange Comm'n, Commission to Review Current Proxy Rules and Regulations to Improve Corporate Democracy, 2003-46 (Apr. 14,2003), available at http://www.sec.gov/news/press/2003-46.htm.
  • 173
    • 84888549867 scopus 로고    scopus 로고
    • See 2003 Proposed Nomination Rule, supra note 38, at 60, 784.
    • See 2003 Proposed Nomination Rule, supra note 38, at 60, 784.
  • 174
    • 84888507893 scopus 로고    scopus 로고
    • See id
    • See id.
  • 175
    • 84888500802 scopus 로고    scopus 로고
    • See id. at 60, 794.
    • See id. at 60, 794.
  • 176
    • 84888541107 scopus 로고    scopus 로고
    • See id. at 60, 789-90.
    • See id. at 60, 789-90.
  • 177
    • 84888482645 scopus 로고    scopus 로고
    • note
    • The majority vote resolution could be submitted only by a shareholder holding at least one percent of a company's outstanding shares for a year.
  • 178
    • 84888563245 scopus 로고    scopus 로고
    • Id. at 60, 789.
    • Id. at 60, 789.
  • 179
    • 84888494435 scopus 로고    scopus 로고
    • Id at 60, 789.
    • Id. at 60, 789.
  • 180
    • 84888497997 scopus 로고    scopus 로고
    • Id.
    • Id.
  • 181
    • 84888530478 scopus 로고    scopus 로고
    • Thus, in a series of "no-action" letters, the SECs staff took the position that shareholder proposals based on Rule 14a-11 could be excluded from the corporation's proxy statement because, given the passage of time without SEC action, the adoption of such proposal appeared to reflect a position that the SEC no longer supported.
    • Thus, in a series of "no-action" letters, the SECs staff took the position that shareholder proposals based on Rule 14a-11 could be excluded from the corporation's proxy statement because, given the passage of time without SEC action, the adoption of such proposal appeared to reflect a position that the SEC no longer supported.
  • 182
    • 84888503512 scopus 로고    scopus 로고
    • See, e.g., Halliburton Co., SEC No-Action Letter, 2005 WL 283290, at *1 Feb. 7, 2005
    • See, e.g., Halliburton Co., SEC No-Action Letter, 2005 WL 283290, at *1 (Feb. 7, 2005);
  • 183
    • 84888503053 scopus 로고    scopus 로고
    • Qwest Communications Int'l Inc., SEC No-Action Letter, 2005 WL 283288, at *1 Feb. 7, 2005
    • Qwest Communications Int'l Inc., SEC No-Action Letter, 2005 WL 283288, at *1 (Feb. 7, 2005).
  • 184
    • 84888478373 scopus 로고    scopus 로고
    • 462 F.3d 121 2d Cir. 2006
    • - 462 F.3d 121 (2d Cir. 2006).
  • 185
    • 84888503526 scopus 로고    scopus 로고
    • See id. at 123.
    • See id. at 123.
  • 186
    • 84888549788 scopus 로고    scopus 로고
    • note
    • The proposal provided that shareholder nominees could be included on the corporate ballot so long as the shareholder making such a nomination held three percent of the outstanding shares for at least a year.
  • 187
    • 84888573750 scopus 로고    scopus 로고
    • Id. at 124 n.3.
    • Id. at 124 n.3.
  • 188
    • 84888561165 scopus 로고    scopus 로고
    • Am Int'l Group, Inc., SEC No-Action Letter, 2005 WL 372266, at *1 Feb. 14,2005
    • Am Int'l Group, Inc., SEC No-Action Letter, 2005 WL 372266, at *1 (Feb. 14,2005).
  • 189
    • 84888486178 scopus 로고    scopus 로고
    • See 2007 Final Shareholder Proposal Rule, supra note 7, at 70, 453; AFSCME, 462 F.2d at 123.
    • See 2007 Final Shareholder Proposal Rule, supra note 7, at 70, 453; AFSCME, 462 F.2d at 123.
  • 190
    • 84888572853 scopus 로고    scopus 로고
    • AFSCME, 462 F.3d at 126
    • AFSCME, 462 F.3d at 126;
  • 191
    • 70349131785 scopus 로고    scopus 로고
    • Final shareholder proposal rule
    • at 70, noting that the SECs position did not allow exclusions based on the election exclusion
    • see also 2007 Final Shareholder Proposal Rule, supra note 7, at 70,451 (noting that the SECs position did not allow exclusions based on the election exclusion).
    • (2007) Supra Note , vol.7 , pp. 451
  • 192
    • 84888484920 scopus 로고    scopus 로고
    • SeeAFSCME, 462 F.3d at 123.
    • SeeAFSCME, 462 F.3d at 123.
  • 193
    • 84888573210 scopus 로고    scopus 로고
    • Id. at 129.
    • Id. at 129.
  • 194
    • 84888491518 scopus 로고    scopus 로고
    • See id
    • See id.
  • 195
    • 84888497080 scopus 로고    scopus 로고
    • See id. at 129-130
    • See id. at 129-130
  • 196
    • 84888532520 scopus 로고    scopus 로고
    • note
    • This ruling occurred because the Second Circuit interpreted the rale to prohibit only those proposals that would result in an immediate election contest, and bylaws focused on procedures did not create such immediate election battles.
  • 197
    • 84888568027 scopus 로고    scopus 로고
    • See id. at 131 noting that the SEC "[could] certainly change its interpretation ofthe election exclusion"
    • See id. at 131 (noting that the SEC "[could] certainly change its interpretation ofthe election exclusion").
  • 198
    • 84888560888 scopus 로고    scopus 로고
    • The SEC held a series of roundtables in May 2007 on the issue of shareholder rights more generally. SeegenerallyU.S. Securities Exchange Comm'n, Spotlight on: Roundtable Discussions Regarding the Proxy Process
    • The SEC held a series of roundtables in May 2007 on the issue of shareholder rights more generally. SeegenerallyU.S. Securities & Exchange Comm'n, Spotlight on: Roundtable Discussions Regarding the Proxy Process, http://www.sec.gov/spotught/proxyprrcess.htm.
  • 199
    • 84888575012 scopus 로고    scopus 로고
    • The SEC also sought comments on electronic shareholder forums and whether corporations or shareholders should have the ability to propose and adopt bylaw procedures for including nonbinding shareholder proposals in the corporation's proxy materials. 2007 Shareholder Proposals, supra note 20, at 43, 469.
    • The SEC also sought comments on electronic shareholder forums and whether corporations or shareholders should have the ability to propose and adopt bylaw procedures for including nonbinding shareholder proposals in the corporation's proxy materials. 2007 Shareholder Proposals, supra note 20, at 43, 469.
  • 200
    • 84888536178 scopus 로고    scopus 로고
    • Id.
    • Id.
  • 201
    • 84888505943 scopus 로고    scopus 로고
    • See id
    • See id.
  • 202
    • 84888491421 scopus 로고    scopus 로고
    • The one-year holding period would apply to each member of the shareholder group. Id. In addition, any soliciting shareholder must be eligible to file and file a Schedule 13G. Id. Schedule 13G is available only for people who have acquired securities without the intention of seeking a change of control of the issuer.
    • The one-year holding period would apply to each member of the shareholder group. Id. In addition, any soliciting shareholder must be eligible to file and file a Schedule 13G. Id. Schedule 13G is available only for people who have acquired securities without the intention of seeking a change of control of the issuer.
  • 203
    • 84888536386 scopus 로고    scopus 로고
    • See id. IIA. See id. at 43, 470.
    • See id. IIA. See id. at 43, 470.
  • 204
    • 84888553611 scopus 로고    scopus 로고
    • See id
    • See id
  • 205
    • 84888491221 scopus 로고    scopus 로고
    • note
    • . Indeed, shareholders could even determine the minimum level of share ownership necessary to have such nominations included in the corporation's proxy statement.
  • 206
    • 84888553674 scopus 로고    scopus 로고
    • See id
    • See id.
  • 207
    • 84888512913 scopus 로고    scopus 로고
    • See Shareholder Proposal Relating to the Election of Directors, Exchange Art Release No. 56,161, Investment Company Art Release No. 27, 914, 72 Fed. Reg. 43, 488, 43, 488-89 proposed July 27, 2007
    • See Shareholder Proposal Relating to the Election of Directors, Exchange Art Release No. 56,161, Investment Company Art Release No. 27, 914, 72 Fed. Reg. 43, 488, 43, 488-89 (proposed July 27, 2007).
  • 208
    • 84888543743 scopus 로고    scopus 로고
    • "Relates to an election for membership on the company's board of directors or analogous governing body." thus, the proposal would change the existing language which enables the corporation to exclude a proposal if the proposal
    • Relates to an election for membership on the company's board of directors or analogous governing body." Thus, the proposal would change the existing language which enables the corporation to exclude a proposal if the proposal "relates to an election for membership on the company's board of directors or analogous governing body."
  • 209
    • 84888488728 scopus 로고    scopus 로고
    • Id. at 43,490.
    • Id. at 43,490.
  • 210
    • 84888479261 scopus 로고    scopus 로고
    • In its place, the new rale would provide for exclusion "[i]f the proposal relates to a nomination or an election for membership on the company's board of directors or analogous governing body or a procedure for such nomination or election."
    • In its place, the new rale would provide for exclusion "[i]f the proposal relates to a nomination or an election for membership on the company's board of directors or analogous governing body or a procedure for such nomination or election."
  • 211
    • 84888572720 scopus 로고    scopus 로고
    • Id. at 43, 496.
    • Id. at 43, 496.
  • 212
    • 70349131785 scopus 로고    scopus 로고
    • Final shareholder proposal rule
    • at 70
    • See 2007 Final Shareholder Proposal Rule, supra note 7, at 70, 450.
    • (2007) Supra Note , vol.7 , pp. 450
  • 213
    • 84888552476 scopus 로고    scopus 로고
    • See Securities Exchange Act of 1934 Rule 14a-12,17 C.F.R. §240.14a-12 2007
    • See Securities Exchange Act of 1934 Rule 14a-12,17 C.F.R. §240.14a-12 (2007).
  • 214
    • 84888569333 scopus 로고    scopus 로고
    • See 2007 Final Shareholder Proposal Rule, supra note 7, at 70, 450. To be sure, the proposed rale allowing shareholder access included additional disclosure requirements under Schedule 13G and new Item 24 and Item 25.2007 Shareholder Proposals, supra note 20, at 43, 471-473
    • See 2007 Final Shareholder Proposal Rule, supra note 7, at 70, 450. To be sure, the proposed rale allowing shareholder access included additional disclosure requirements under Schedule 13G and new Item 24 and Item 25.2007 Shareholder Proposals, supra note 20, at 43, 471-473
  • 215
    • 70349131785 scopus 로고    scopus 로고
    • Final shareholder proposal rule
    • at 70
    • See 2007 Final Shareholder Proposal Rule, supra note 7, at 70, 451.
    • (2007) Supra Note , vol.7 , pp. 451
  • 216
    • 84888517225 scopus 로고    scopus 로고
    • See id. at 70, 452.
    • See id. at 70, 452.
  • 217
    • 84888565242 scopus 로고    scopus 로고
    • note
    • In addition to excluding such bylaw provisions, the rule also excluded any provisions that would have the impact of disqualifying a nominee, removing a director prior to the end of her term, or questioning a director's competence or business judgment.
  • 218
    • 84888564151 scopus 로고    scopus 로고
    • See id. at 70, 454.
    • See id. at 70, 454.
  • 219
    • 84888528137 scopus 로고    scopus 로고
    • note
    • Importantly, however, the SEC made clear that corporations cannot use the rule to exclude proposals relating to voting procedures, such as those requiring majority voting in the election of directors.
  • 220
    • 84888488383 scopus 로고    scopus 로고
    • See id
    • See id.
  • 221
    • 84888504939 scopus 로고    scopus 로고
    • See id. at 70,453.
    • See id. at 70,453.
  • 222
    • 84888565980 scopus 로고    scopus 로고
    • See id. at 70,452 noting that inaction by the SEC would promote uncertainty, escalating the confusion created by the AFSCME decision and effectively requiring shareholders and courts to litigate the meaning ofthe proxy rules
    • See id. at 70,452 (noting that inaction by the SEC would promote uncertainty, escalating the confusion created by the AFSCME decision and effectively requiring shareholders and courts to litigate the meaning ofthe proxy rules).
  • 223
    • 84888579013 scopus 로고    scopus 로고
    • See id. at 70, 450. The new rules took effect January 10, 2008.
    • See id. at 70, 450. The new rules took effect January 10, 2008.
  • 224
    • 84888522559 scopus 로고    scopus 로고
    • See Wutkowski, supra note 4.
    • See Wutkowski, supra note 4.
  • 225
    • 84888495012 scopus 로고    scopus 로고
    • Christopher Cox, Chairman, U.S. Securities Exchange Comm'n, The SEC Agenda for 2008: Remarks to the 'SEC Speaks in 2008' Program of the Practising Law Institute (Feb. 8. 2008), available at
    • See Christopher Cox, Chairman, U.S. Securities & Exchange Comm'n, The SEC Agenda for 2008: Remarks to the 'SEC Speaks in 2008' Program of the Practising Law Institute (Feb. 8. 2008), available at http://www. knowledgemosaic.rom/Gateway/Rules/SP.spch020808cc.020808.htm.
  • 226
    • 84888495253 scopus 로고    scopus 로고
    • In his speech, Cox stated that the SECs Division of Corporate Finance would "continue to pursue our fundamental objective of making the federally-regulated proxy system fit better with the stateauthorized rights of shareholders to determine the directors of the companies they own." Id. To be sure, such a statement is not necessarily a promise to seek some form of proxy access. However, it may ensure that such access will remain part of the governance conversation.
    • In his speech, Cox stated that the SECs Division of Corporate Finance would "continue to pursue our fundamental objective of making the federally-regulated proxy system fit better with the stateauthorized rights of shareholders to determine the directors of the companies they own." Id. To be sure, such a statement is not necessarily a promise to seek some form of proxy access. However, it may ensure that such access will remain part of the governance conversation.
  • 227
    • 84888502608 scopus 로고    scopus 로고
    • See Wutkowski, supra note 4.
    • See Wutkowski, supra note 4.
  • 228
    • 84888531284 scopus 로고    scopus 로고
    • See 1983 Final Rule, supra note 97, at 38,218 n.3 noting that some commentators supported the concepts underlying Proposal II, but did not support the proposal itself
    • See 1983 Final Rule, supra note 97, at 38,218 n.3 (noting that some commentators supported the concepts underlying Proposal II, but did not support the proposal itself).
  • 229
    • 84888575455 scopus 로고    scopus 로고
    • See id. at 38,218 n.2 noting the large number of comments opposing proxy access
    • See id. at 38,218 n.2 (noting the large number of comments opposing proxy access).
  • 230
    • 70349127928 scopus 로고
    • Is shareholder democracy attainable?
    • 621
    • See William J. Feis, Is Shareholder Democracy Attainable?, 31 Bus. LAW. 621, 640 (1976).
    • (1976) Bus. Law. , vol.31 , pp. 640
    • Feis, W.J.1
  • 231
    • 84888563888 scopus 로고    scopus 로고
    • See Internet Availability of Proxy Materials, Exchange Art Release No. 55,146, Investment Company Art Release No. 27,671, 72 Fed. Reg. 4148, 4148-88 (Jan. 29, 2007) [hereinafter Final E-proxy Rule].
    • See Internet Availability of Proxy Materials, Exchange Art Release No. 55,146, Investment Company Art Release No. 27,671, 72 Fed. Reg. 4148, 4148-88 (Jan. 29, 2007) [hereinafter Final E-proxy Rule].
  • 232
    • 84888549181 scopus 로고    scopus 로고
    • These rules mark the first time the SEC has sought to rely on the Internet to provide an alternative method for proxy solicitation.
    • These rules mark the first time the SEC has sought to rely on the Internet to provide an alternative method for proxy solicitation.
  • 233
    • 84888510447 scopus 로고    scopus 로고
    • See Brimer, supra note 29, at 191.
    • See Brimer, supra note 29, at 191.
  • 234
    • 84888568154 scopus 로고    scopus 로고
    • In the past, the SEC has provided interpretive guidance regarding the manner in which electronic measures may satisfy the existing proxy delivery requirements. Thus, the SEC published an interpretive release in October 1995 focusing on the use of electronic media to communicate with investors.
    • In the past, the SEC has provided interpretive guidance regarding the manner in which electronic measures may satisfy the existing proxy delivery requirements. Thus, the SEC published an interpretive release in October 1995 focusing on the use of electronic media to communicate with investors.
  • 235
    • 84888524288 scopus 로고    scopus 로고
    • See Use of Electronic Media for Delivery Purposes, Securities Act Release No. 7233, Exchange Art Release No. 36,345, Investment Company Act Release No. 21,399, 60 Fed. Reg. 53,458 Oct. 13, 1995
    • See Use of Electronic Media for Delivery Purposes, Securities Act Release No. 7233, Exchange Art Release No. 36,345, Investment Company Act Release No. 21,399, 60 Fed. Reg. 53,458 (Oct. 13, 1995).
  • 236
    • 84888502582 scopus 로고    scopus 로고
    • In April 2000, the SEC published another interpretive release.
    • In April 2000, the SEC published another interpretive release.
  • 237
    • 84888574380 scopus 로고    scopus 로고
    • See Use of Electronic Media, Securities Act Release No. 7856, Exchange Art Release No. 42,728, Investment Company Act 24,426,65 Fed. Reg. 25,843 May 4,2000
    • See Use of Electronic Media, Securities Act Release No. 7856, Exchange Art Release No. 42,728, Investment Company Act 24,426,65 Fed. Reg. 25,843 (May 4,2000).
  • 238
    • 84888534460 scopus 로고    scopus 로고
    • See Brimer, supra note 29, at 186-190 describing the SECs historical guidance on electronic methods of communication In contrast, these new rules provide shareholders with an alternative method of delivering proxy materials.
    • See Brimer, supra note 29, at 186-190 (describing the SECs historical guidance on electronic methods of communication). In contrast, these new rules provide shareholders with an alternative method of delivering proxy materials.
  • 239
    • 84888526050 scopus 로고    scopus 로고
    • See Final E-proxy Rule, supra note 141, at 4148.
    • See Final E-proxy Rule, supra note 141, at 4148.
  • 240
    • 84888553073 scopus 로고    scopus 로고
    • See Internet Availability of Proxy Materials, Exchange Act Release No. 52,926, Investment Company Act Release No. 27,182,70 Fed. Reg. 74,598 (proposed Dec. 8,2005) [hereinafter Proposed E-proxy Rule].
    • See Internet Availability of Proxy Materials, Exchange Act Release No. 52,926, Investment Company Act Release No. 27,182,70 Fed. Reg. 74,598 (proposed Dec. 8,2005) [hereinafter Proposed E-proxy Rule].
  • 241
    • 84888506542 scopus 로고    scopus 로고
    • n.49. In addition, the notice must be sent forty calendar days before the shareholder meeting date.
    • See Final E-proxy Rule, supra note 141, at 4151 n.49. In addition, the notice must be sent forty calendar days before the shareholder meeting date.
    • Supra Note , vol.141 , pp. 4151
  • 242
    • 84888520512 scopus 로고    scopus 로고
    • See id at 4150. The notice must include such information as a statement of the matters to be voted on and information regarding how to request a paper copy of the proxy materials.
    • See id at 4150. The notice must include such information as a statement of the matters to be voted on and information regarding how to request a paper copy of the proxy materials.
  • 243
    • 84888526673 scopus 로고    scopus 로고
    • See id. at 4151-52. To mitigate concerns that shareholders would vote prior to reviewing their proxy statement, a proxy card cannot be sent along with the notice.
    • See id. at 4151-52. To mitigate concerns that shareholders would vote prior to reviewing their proxy statement, a proxy card cannot be sent along with the notice.
  • 244
    • 84888543837 scopus 로고    scopus 로고
    • See id. at 4150. Instead, the proxy card must be posted on the Web site containing the proxy statement, and such site must provide a mechanism for executing the proxy card electronically.
    • See id. at 4150. Instead, the proxy card must be posted on the Web site containing the proxy statement, and such site must provide a mechanism for executing the proxy card electronically.
  • 245
    • 84888508807 scopus 로고    scopus 로고
    • See id. at 4153. However, soliciting shareholders and issuers have the option of sending a proxy card ten days after they have distributed notice.
    • See id. at 4153. However, soliciting shareholders and issuers have the option of sending a proxy card ten days after they have distributed notice.
  • 246
    • 84888500535 scopus 로고    scopus 로고
    • See id.
    • See id.
  • 247
    • 84888525094 scopus 로고    scopus 로고
    • 145. See id. at 4154.
    • - 145. See id. at 4154.
  • 248
    • 84888493917 scopus 로고    scopus 로고
    • See id. at 4149, 4154. The request, however, can be revoked.
    • See id. at 4149, 4154. The request, however, can be revoked.
  • 249
    • 84888536033 scopus 로고    scopus 로고
    • See id. at 4154 n.86.
    • See id. at 4154 n.86.
  • 250
    • 84888524154 scopus 로고    scopus 로고
    • See id. at 4158.
    • See id. at 4158.
  • 251
    • 84888547220 scopus 로고    scopus 로고
    • The proposed rules included a provision allowing soliciting shareholders, but not the issuer, to engage in a conditional solicitation by conditioning proxy solicitation on a solicited shareholder's agreement to rely solely on the Internet to access proxy materials. Such a conditional solicitation would mean that soliciting shareholders would not have to furnish paper copies to those who requested them. However, the final rules rejected such conditional solicitations, and hence a soliciting shareholder must send a paper copy to any shareholder to whom notice was sent.
    • The proposed rules included a provision allowing soliciting shareholders, but not the issuer, to engage in a conditional solicitation by conditioning proxy solicitation on a solicited shareholder's agreement to rely solely on the Internet to access proxy materials. Such a conditional solicitation would mean that soliciting shareholders would not have to furnish paper copies to those who requested them. However, the final rules rejected such conditional solicitations, and hence a soliciting shareholder must send a paper copy to any shareholder to whom notice was sent.
  • 252
    • 84888547915 scopus 로고    scopus 로고
    • See id. at 4150, 4158.
    • See id. at 4150, 4158.
  • 253
    • 84888557510 scopus 로고    scopus 로고
    • See id. at 4164 (noting that "undertaking a proxy contest is often a very costly endeavor")
    • See id. at 4164 (noting that "undertaking a proxy contest is often a very costly endeavor");
  • 254
    • 84888529198 scopus 로고    scopus 로고
    • see also and accompanying text
    • see also supra note 140 and accompanying text
    • Supra Note , vol.140
  • 255
    • 84869614996 scopus 로고    scopus 로고
    • See Final E-proxy Rule, Issuers and others spent $481.2 million on printing and mailing costs in Automated Data Processing (ADP) mails proxy materials for beneficial owners, and in 2005, ADP was responsible for mailing about fifty percent of proxy materials.
    • See Final E-proxy Rule, supra note 141, at 4162. Issuers and others spent $481.2 million on printing and mailing costs in 2006. Automated Data Processing (ADP) mails proxy materials for beneficial owners, and in 2005, ADP was responsible for mailing about fifty percent of proxy materials.
    • (2006) Supra Note , vol.141 , pp. 4162
  • 256
    • 84888516388 scopus 로고    scopus 로고
    • See id. ADP's costs together with issuers and others amounted to $962.4 million.
    • See id. ADP's costs together with issuers and others amounted to $962.4 million.
  • 257
    • 84888476841 scopus 로고    scopus 로고
    • See id.
    • See id.
  • 258
    • 84888544667 scopus 로고    scopus 로고
    • In the adopting release, the SEC noted that the new rules were designed to give soliciting shareholders "an alternative method to furnish proxy materials that may have the effect of reducing the cost of engaging in a proxy contest."
    • In the adopting release, the SEC noted that the new rules were designed to give soliciting shareholders "an alternative method to furnish proxy materials that may have the effect of reducing the cost of engaging in a proxy contest."
  • 259
    • 84888489747 scopus 로고    scopus 로고
    • See Proposed E-proxy Rule, Elsewhere in the release, the SEC pointed out that the rules could "significantly decrease the cost of proxy solicitation, given the potential decrease in printing and mailing costs."
    • See Proposed E-proxy Rule, supra note 143, at 74,599. Elsewhere in the release, the SEC pointed out that the rules could "significantly decrease the cost of proxy solicitation, given the potential decrease in printing and mailing costs."
    • Supra Note , vol.143 , pp. 74599
  • 260
    • 84888500873 scopus 로고    scopus 로고
    • Id. at 74, 607
    • Id. at 74, 607;
  • 261
    • 84888511316 scopus 로고    scopus 로고
    • (noting that reduction in printing and mailing costs and the potential decrease in costs of proxy contests represent the most significant sources of the new rules' economic benefit).
    • see also Final E-proxy Rule, supra note 141, at 4162 (noting that reduction in printing and mailing costs and the potential decrease in costs of proxy contests represent the most significant sources of the new rules' economic benefit).
    • Supra Note , vol.141 , pp. 4162
  • 262
    • 84888572466 scopus 로고    scopus 로고
    • 29, (noting that e-proxy rules should increase efficiency and effectiveness of proxy contests).
    • See Brimer, supra note 29, at 198 (noting that e-proxy rules should increase efficiency and effectiveness of proxy contests).
    • Supra Note , pp. 198
    • Brimer1
  • 264
    • 84888546244 scopus 로고    scopus 로고
    • See Final E-proxy Rule
    • See Final E-proxy Rule, supra note 141, at 4154.
    • Supra Note , vol.141 , pp. 4154
  • 265
    • 84888499591 scopus 로고    scopus 로고
    • Id. at 4162.
    • Id. at 4162.
  • 266
    • 84888496111 scopus 로고    scopus 로고
    • See id. at 4163.
    • See id. at 4163.
  • 267
    • 84888479475 scopus 로고    scopus 로고
    • See id. at 4163 (noting that cost savings will be substantially reduced if paper copies are supplied on an on-demand basis).
    • See id. at 4163 (noting that cost savings will be substantially reduced if paper copies are supplied on an on-demand basis).
  • 268
    • 84888541567 scopus 로고    scopus 로고
    • See Proposed E-proxy Rule, 613.
    • See Proposed E-proxy Rule, supra note 143, at 74,613.
    • Supra Note , vol.143 , pp. 74
  • 269
    • 84888570020 scopus 로고    scopus 로고
    • See Final E-proxy Rule
    • See Final E-proxy Rule, supra note 141, at 4150.
    • Supra Note , vol.141 , pp. 4150
  • 270
    • 84888563422 scopus 로고    scopus 로고
    • See id. at 4154. However, the ability to predict the number of requested paper copies with accuracy may increase over time as issuers and shareholders gain familiarity with shareholder preferences.
    • See id. at 4154. However, the ability to predict the number of requested paper copies with accuracy may increase over time as issuers and shareholders gain familiarity with shareholder preferences.
  • 271
    • 84888566571 scopus 로고    scopus 로고
    • See id. at 4154 n.86.
    • See id. at 4154 n.86.
  • 272
    • 84888553944 scopus 로고    scopus 로고
    • (noting problems associated with prior electronic releases).
    • See Brimer, supra note 29, at 192 (noting problems associated with prior electronic releases).
    • Supra Note , vol.29 , pp. 192
    • Brimer1
  • 273
    • 84888532993 scopus 로고    scopus 로고
    • See Final E-proxy Rule
    • See Final E-proxy Rule, supra note 141, at 4149.
    • Supra Note , vol.141 , pp. 4149
  • 274
    • 84888502173 scopus 로고    scopus 로고
    • See id.
    • See id.;
  • 275
    • 84888480854 scopus 로고    scopus 로고
    • see also Brimer, Other studies reveal that Americans spend an average of fourteen hours online each month.
    • see also Brimer, supra note 29, at 179. Other studies reveal that Americans spend an average of fourteen hours online each month.
    • Supra Note , vol.29 , pp. 179
  • 276
    • 84888492267 scopus 로고    scopus 로고
    • See id
    • See id
  • 277
    • 84888532993 scopus 로고    scopus 로고
    • See Final E-proxy Rule
    • See Final E-proxy Rule, supra note 141, at 4149.
    • Supra Note , vol.141 , pp. 4149
  • 278
    • 84888528278 scopus 로고    scopus 로고
    • See id. at 4163.
    • See id. at 4163.
  • 279
    • 84888492851 scopus 로고    scopus 로고
    • See id.
    • See id.
  • 280
    • 84888550400 scopus 로고    scopus 로고
    • See id.
    • See id.
  • 281
    • 84888518377 scopus 로고    scopus 로고
    • Memorandum from David Huntington, Office of the Chairman, to File S7-10-05: Internet Availability of Proxy Materials 14 (Nov. 28, 2006), available at
    • Memorandum from David Huntington, Office of the Chairman, to File S7-10-05: Internet Availability of Proxy Materials 14 (Nov. 28, 2006), available at http://www.sec.gov/rules/proposed/s71005/s71005-159.pdf.
  • 282
    • 84888500880 scopus 로고    scopus 로고
    • See TheCorporateCounsel.net Blog, (Jan. 15, 2008 6:07 EST).
    • See TheCorporateCounsel.net Blog, http://www.thecorporatecounsel.net/ blog/archive/001628.html (Jan. 15, 2008 6:07 EST).
  • 283
    • 84888525919 scopus 로고    scopus 로고
    • See Final E-proxy Rule, The exact cost estimate was $2,020,475.
    • See Final E-proxy Rule, supra note 141, at 4163. The exact cost estimate was $2,020,475.
    • Supra Note , vol.141 , pp. 4163
  • 284
    • 84888569227 scopus 로고    scopus 로고
    • Id.
    • Id.
  • 285
    • 84888507349 scopus 로고    scopus 로고
    • See id. at 4158.
    • See id. at 4158.
  • 286
    • 84888515082 scopus 로고    scopus 로고
    • See id. The SEC hopes that this will curtail abuses of shareholders conducting nuisance contests.
    • See id. The SEC hopes that this will curtail abuses of shareholders conducting nuisance contests.
  • 287
    • 84888535930 scopus 로고    scopus 로고
    • Id.
    • Id.
  • 288
    • 84888481120 scopus 로고    scopus 로고
    • 2007 Shareholder Proposals
    • - 2007 Shareholder Proposals, supra note 20, at 43,483.
    • Supra Note , vol.20 , Issue.43 , pp. 483
  • 289
    • 84888543077 scopus 로고    scopus 로고
    • See 17 C.F.R. § 240.14a-7(a)(2)(A)-(B)
    • See 17 C.F.R. § 240.14a-7(a)(2)(A)-(B) (2007).
    • (2007)
  • 290
    • 84888562492 scopus 로고    scopus 로고
    • "without undue burden or expense."
    • Thus, the shareholder list must be provided in the format requested by shareholders, but only to the extent that such form is available to the corporation "without undue burden or expense." 17 C.F.R. § 240.14a-7(a)(iii).
    • 17 C.F.R. § 240.14a-7(a)(iii).
  • 291
    • 84888485528 scopus 로고    scopus 로고
    • See DEL. CODE ANN. tit. 8, § 219(a) ("Nothing contained in this section shall require the corporation to include electronic mail addresses or other electronic contact information on such list").
    • See DEL. CODE ANN. tit. 8, § 219(a) (2007) ("Nothing contained in this section shall require the corporation to include electronic mail addresses or other electronic contact information on such list").
    • (2007)
  • 292
    • 84888546244 scopus 로고    scopus 로고
    • See Final E-proxy Rule
    • See Final E-proxy Rule, supra note 141, at 4154.
    • Supra Note , vol.141 , pp. 4154
  • 293
    • 84888523985 scopus 로고    scopus 로고
    • See id. at 4151, 4158.
    • See id. at 4151, 4158.
  • 294
    • 84888498748 scopus 로고    scopus 로고
    • See supra note 105.
    • Supra Note , vol.105
  • 295
    • 84888560505 scopus 로고    scopus 로고
    • See 17C.F.R.§ 240.14a-8(m)(1)(noting company's right to include reasons it believes shareholders should vote against a proposal).
    • See 17C.F.R.§ 240.14a-8(m)(1)(noting company's right to include reasons it believes shareholders should vote against a proposal).
  • 296
    • 84888515695 scopus 로고    scopus 로고
    • See id. (noting that shareholders may express their views in the context of their supporting statement).
    • See id. (noting that shareholders may express their views in the context of their supporting statement).
  • 297
    • 84888541068 scopus 로고    scopus 로고
    • See 17 C.F.R. § 240.14a-8(d).
    • See 17 C.F.R. § 240.14a-8(d).
  • 298
    • 84888499384 scopus 로고    scopus 로고
    • A company must send a copy of its opposing statement to shareholders before it mails the proxy materials.
    • A company must send a copy of its opposing statement to shareholders before it mails the proxy materials.
  • 299
    • 84888549808 scopus 로고    scopus 로고
    • See 17 C.F.R. § 240.14a-8(m)(3). However, such a notification occurs after shareholders have submitted their proposals.
    • See 17 C.F.R. § 240.14a-8(m)(3). However, such a notification occurs after shareholders have submitted their proposals.
  • 300
    • 84888478097 scopus 로고    scopus 로고
    • See 17 C.F.R. § 240.14a-8(e)(2).
    • See 17 C.F.R. § 240.14a-8(e)(2).
  • 301
    • 84888494037 scopus 로고    scopus 로고
    • The e-proxy rules enable shareholders to solicit votes and hence receive such votes from other shareholders. As a result, those rules enable shareholders to track the voting behavior or shareholders. By contrast, under a proxy access regime where shareholders would be entitled to have their names included on the corporation's proxy statement, shareholders submit their votes to the corporation and hence the corporation-and not the shareholders-have the ability to track those votes.
    • The e-proxy rules enable shareholders to solicit votes and hence receive such votes from other shareholders. As a result, those rules enable shareholders to track the voting behavior or shareholders. By contrast, under a proxy access regime where shareholders would be entitled to have their names included on the corporation's proxy statement, shareholders submit their votes to the corporation and hence the corporation-and not the shareholders-have the ability to track those votes.
  • 302
    • 84888504069 scopus 로고    scopus 로고
    • See Eisenberg, ("[I]ncumbents gain an important psychological advantage in soliciting under the name of 'the corporation.'").
    • See Eisenberg, supra note 35, at 1504 ("[I]ncumbents gain an important psychological advantage in soliciting under the name of 'the corporation.'").
    • Supra Note , vol.35 , pp. 1504
  • 303
    • 84888575195 scopus 로고    scopus 로고
    • See and accompanying text.
    • See supra note 181 and accompanying text.
    • Supra Note , vol.181
  • 304
    • 84888531705 scopus 로고    scopus 로고
    • For example, majority voting proposals have won significant shareholder support in the last few years.
    • For example, majority voting proposals have won significant shareholder support in the last few years.
  • 305
    • 84888496904 scopus 로고    scopus 로고
    • See infra note 218 and accompanying text.
    • See infra note 218 and accompanying text.
  • 306
    • 84888510768 scopus 로고    scopus 로고
    • See and accompanying text.
    • See supra note 66 and accompanying text.
    • Supra Note , vol.66
  • 307
    • 84888487485 scopus 로고    scopus 로고
    • See Final E-proxy Rule, The Rule requires that the issuer concurrently provide shareholders with at least one method of executing a proxy card, which includes providing an electronic voting platform or a telephone number. However, merely requiring a means to request a paper copy of the proxy card would be insufficient.
    • See Final E-proxy Rule, supra note 141, at 4153. The Rule requires that the issuer concurrently provide shareholders with at least one method of executing a proxy card, which includes providing an electronic voting platform or a telephone number. However, merely requiring a means to request a paper copy of the proxy card would be insufficient.
    • Supra Note , vol.141 , pp. 4153
  • 308
    • 84888497313 scopus 로고    scopus 로고
    • See id. at 4153-4154
    • See id. at 4153-4154
  • 309
    • 84888520554 scopus 로고    scopus 로고
    • See Danielle Keats Citron, Open Code Governance, 2008 U. CHI. LEGAL F. 355, 363-365 (discussing instances where thousands of votes were lost or added during various municipal, state, and federal elections, including the presidential election).
    • See Danielle Keats Citron, Open Code Governance, 2008 U. CHI. LEGAL F. 355, 363-365 (discussing instances where thousands of votes were lost or added during various municipal, state, and federal elections, including the presidential election).
  • 310
    • 84888481832 scopus 로고    scopus 로고
    • Id. at 364.
    • Id. at 364.
  • 311
    • 84888486864 scopus 로고    scopus 로고
    • Id. at 364-365
    • Id. at 364-365
  • 312
    • 84888517722 scopus 로고    scopus 로고
    • See id. at 368-369
    • See id. at 368-369
  • 313
    • 84888514689 scopus 로고    scopus 로고
    • See Final E-proxy Rule
    • See Final E-proxy Rule, supra note 141, at 4152.
    • Supra Note , vol.141 , pp. 4152
  • 314
    • 84888534550 scopus 로고    scopus 로고
    • See id. at 4152-4153
    • See id. at 4152-4153
  • 315
    • 84888538136 scopus 로고    scopus 로고
    • See id. at 4153.
    • See id. at 4153.
  • 316
    • 84888520406 scopus 로고    scopus 로고
    • See id. at 4152 (noting that a large majority of shares are already voted electronically).
    • See id. at 4152 (noting that a large majority of shares are already voted electronically).
  • 317
    • 84888541695 scopus 로고    scopus 로고
    • STUDY OF MAJORITY VOTING IN DIRECTOR ELECTIONS ii (2007), available at
    • See CLAUDIA H. ALLEN, STUDY OF MAJORITY VOTING IN DIRECTOR ELECTIONS ii (2007), available at http:/www.ngelaw.com/files/upload/majority-callen-020707. pdf.
    • Allen, C.H.1
  • 318
    • 84888501992 scopus 로고    scopus 로고
    • See 2003 Proposed Nomination Rule, n.52
    • See 2003 Proposed Nomination Rule, supra note 38, at 60, 786 n.52;
    • Supra Note , vol.38 , Issue.60 , pp. 786
  • 320
    • 84888559482 scopus 로고    scopus 로고
    • Part of the reason corporations have a withhold option, but not one providing for a vote against a director, is grounded in the proxy rules. The proxy rules require corporations to ensure that their proxy card has a place where shareholders can withhold their vote.
    • Part of the reason corporations have a withhold option, but not one providing for a vote against a director, is grounded in the proxy rules. The proxy rules require corporations to ensure that their proxy card has a place where shareholders can withhold their vote.
  • 321
    • 84888496404 scopus 로고    scopus 로고
    • See Securities Exchange Act of 1934 Rule 14a-4(b)(2), 17 C.F.R. § 240.14a-4(b)(2) (2007). However, the SEC decided against implementing a proposal that would have required proxy cards to contain a mechanism to allow shareholders to vote against a director because of concerns about its legal effect See Shareholder Communications, Shareholder Participation in the Corporate Electoral Process and Corporate Governance Generally, Exchange Act Release No. 34-16356, 44 Fed. Reg. 68,764, 68,765 (Nov. 29, 1979).
    • See Securities Exchange Act of 1934 Rule 14a-4(b)(2), 17 C.F.R. § 240.14a-4(b)(2) (2007). However, the SEC decided against implementing a proposal that would have required proxy cards to contain a mechanism to allow shareholders to vote against a director because of concerns about its legal effect See Shareholder Communications, Shareholder Participation in the Corporate Electoral Process and Corporate Governance Generally, Exchange Act Release No. 34-16356, 44 Fed. Reg. 68,764, 68,765 (Nov. 29, 1979).
  • 322
    • 0040884151 scopus 로고
    • Withhold-the-vote campaigns were recommended in a 1993 law review article by former SEC Commissioner and Professor Joseph Grundfest. See 45 STAN. L. REV. Withhold-the-vote campaigns must comply with the proxy rules. Generally, those rules allow shareholders who conduct such campaigns an exemption for filing a proxy statement so long as such shareholders do not solicit proxies during the campaign.
    • Withhold-the-vote campaigns were recommended in a 1993 law review article by former SEC Commissioner and Professor Joseph Grundfest. See Joseph A. Grundfest, Just Vote No: A Minimalist Strategy for Dealing with Barbarians Inside the Gates, 45 STAN. L. REV. 857 (1993). Withhold-the-vote campaigns must comply with the proxy rules. Generally, those rules allow shareholders who conduct such campaigns an exemption for filing a proxy statement so long as such shareholders do not solicit proxies during the campaign.
    • (1993) Just Vote No: A Minimalist Strategy for Dealing with Barbarians Inside the Gates , vol.857
    • Grundfest, J.A.1
  • 323
    • 84888516645 scopus 로고    scopus 로고
    • See Rule 14a-2(b)(1), 17 C.F.R. § 240.14a-2(b)(1) (2007).
    • See Rule 14a-2(b)(1), 17 C.F.R. § 240.14a-2(b)(1) (2007).
  • 324
    • 70349140268 scopus 로고    scopus 로고
    • See In re Walt Disney Co. Derivative Litig., 731 A.2d 342, 352 Del. Ch. aff'd in part, rev 'd in part, and remanded in part sub nom., Brehm v. Eisner, 746 A.2d 244 (Del. Super. Ct. 2000). Indeed, Eisner encouraged Disney directors to hire Michael Ovitz. Yet almost immediately after his hire, directors became dissatisfied with Ovitz's performance and eventually fired him some fourteen months later.
    • See In re Walt Disney Co. Derivative Litig., 731 A.2d 342, 352 (Del. Ch. 1998), aff'd in part, rev 'd in part, and remanded in part sub nom., Brehm v. Eisner, 746 A.2d 244 (Del. Super. Ct. 2000). Indeed, Eisner encouraged Disney directors to hire Michael Ovitz. Yet almost immediately after his hire, directors became dissatisfied with Ovitz's performance and eventually fired him some fourteen months later.
    • (1998)
  • 325
    • 84888568162 scopus 로고    scopus 로고
    • See id. Ovitz's severance package enabled him to receive $140 million upon his termination.
    • See id. Ovitz's severance package enabled him to receive $140 million upon his termination.
  • 326
    • 84888520265 scopus 로고    scopus 로고
    • Id. at 350.
    • Id. at 350.
  • 327
    • 84888515893 scopus 로고    scopus 로고
    • 2004 PROXY REPORT
    • - 2004 PROXY REPORT, supra note 83, at 5.
    • Supra Note , vol.83 , pp. 5
  • 328
    • 84888558025 scopus 로고    scopus 로고
    • See id. at 9. Shareholders withheld their vote to express their dissatisfaction with directors' decision not to implement majority voting.
    • See id. at 9. Shareholders withheld their vote to express their dissatisfaction with directors' decision not to implement majority voting.
  • 329
    • 84888507913 scopus 로고    scopus 로고
    • See id.
    • See id.
  • 330
    • 84888555092 scopus 로고    scopus 로고
    • See id.
    • See id.
  • 331
    • 84888515045 scopus 로고    scopus 로고
    • To be sure, the Disney vote did appear to generate indirect pressure on Eisner to resign. Hence, within hours of the vote, Disney removed Eisner from his position as board chair, and six months later, Eisner resigned from his post as CEO. See id. at 5.
    • To be sure, the Disney vote did appear to generate indirect pressure on Eisner to resign. Hence, within hours of the vote, Disney removed Eisner from his position as board chair, and six months later, Eisner resigned from his post as CEO. See id. at 5.
  • 332
    • 84888570705 scopus 로고    scopus 로고
    • Most corporations require that a candidate receive a majority of the votes present and voting at a meeting or a majority of the quorum, as opposed to the more stringent standard of a majority of the outstanding votes. See
    • Most corporations require that a candidate receive a majority of the votes present and voting at a meeting or a majority of the quorum, as opposed to the more stringent standard of a majority of the outstanding votes. See ALLEN, supra note 199, at iv.
    • Supra Note , vol.199
    • Allen1
  • 333
    • 84888488528 scopus 로고    scopus 로고
    • See Verret, supra note 200, at 1010.
    • Supra Note , vol.200 , pp. 1010
    • Verret1
  • 334
    • 84888518986 scopus 로고    scopus 로고
    • See PFIZER INC., CORPORATE GOVERNANCE PRINCIPLES 1-2 (2008), available at
    • See PFIZER INC., CORPORATE GOVERNANCE PRINCIPLES 1-2 (2008), available at http://media.pfizer.com/files/investors/corporate-governance/cg-principles.pdf,
  • 335
    • 84888577679 scopus 로고    scopus 로고
    • see also 2005 PROXY REPORT, Pfizer adopted the plurality plus model in June 2005. See Press Release, Pfizer, Inc., Pfizer to Amend Corporate Governance Principles Regarding Election of Directors (June 23, 2005), available at (follow "Press Release Archive," then follow "2005 Archives").
    • see also 2005 PROXY REPORT, supra note 83, at 10. Pfizer adopted the plurality plus model in June 2005. See Press Release, Pfizer, Inc., Pfizer to Amend Corporate Governance Principles Regarding Election of Directors (June 23, 2005), available at http://www.pfizer.com/news/press-releases/pfizer-press- releases.jsp (follow "Press Release Archive," then follow "2005 Archives").
    • Supra Note , vol.83 , pp. 10
  • 336
    • 84888497891 scopus 로고    scopus 로고
    • See PFIZER, INC.
    • See PFIZER, INC., supra note 210, at 1.
    • Supra Note , vol.210 , pp. 1
  • 337
    • 84888485940 scopus 로고    scopus 로고
    • Id at 2.
    • Id. at 2.
  • 338
    • 84888536339 scopus 로고    scopus 로고
    • Between January 1 and June 10 of 2005, 2006, and 2007, shareholders submitted 54, 84, and 37 such proposals, respectively. See 2007 PROXY REPORT
    • Between January 1 and June 10 of 2005, 2006, and 2007, shareholders submitted 54, 84, and 37 such proposals, respectively. See 2007 PROXY REPORT, supra note 49, at 6.
    • Supra Note , vol.49 , pp. 6
  • 340
    • 70349114023 scopus 로고    scopus 로고
    • 2006 PROXY REPORT, Council of Institutional Investors urged 1500 of the largest U.S. companies to adopt majority voting.
    • - 2006 PROXY REPORT, supra note 48, at 2. In 2005, Council of Institutional Investors urged 1500 of the largest U.S. companies to adopt majority voting.
    • (2005) Supra Note , vol.48 , pp. 2
  • 341
    • 84888504528 scopus 로고    scopus 로고
    • in PRE-CONFERENCE BRIEFING TO THE 39TH ANNUAL INSTITUTE ON SECURITIES REGULATION: SHAREHOLDER ACTIVISM: FINDING THE BALANCE 313, 320 (PLI Corp. Law & Practice, Course Handbook Series No. 11508, 2007).
    • See Arthur Fleischer, Jr., Majority Voting and Shareholder Access, in PRE-CONFERENCE BRIEFING TO THE 39TH ANNUAL INSTITUTE ON SECURITIES REGULATION: SHAREHOLDER ACTIVISM: FINDING THE BALANCE 313, 320 (PLI Corp. Law & Practice, Course Handbook Series No. 11508, 2007).
    • Majority Voting and Shareholder Access
    • Fleischer Jr., A.1
  • 342
    • 84888494193 scopus 로고    scopus 로고
    • See 2007 PROXY REPORT
    • See 2007 PROXY REPORT, supra note 49, at 16.
    • Supra Note , vol.49 , pp. 16
  • 343
    • 84888525689 scopus 로고    scopus 로고
    • See 2006 PROXY REPORT, chart
    • See 2006 PROXY REPORT, supra note 48, at 3 chart 1.
    • Supra Note , vol.48 , Issue.3 , pp. 1
  • 344
    • 84888478755 scopus 로고    scopus 로고
    • See 2007 PROXY REPORT, The average shareholder support was 44.3% in 2005, 47.7% in 2006, and 50.3% in 2007.
    • See 2007 PROXY REPORT, supra note 49, at 6, 17. The average shareholder support was 44.3% in 2005, 47.7% in 2006, and 50.3% in 2007.
    • Supra Note , vol.49 , Issue.6 , pp. 17
  • 345
    • 84888531795 scopus 로고    scopus 로고
    • Id. at 6.
    • Id. at 6.
  • 346
    • 84888524461 scopus 로고    scopus 로고
    • ("Majority voting is clearly becoming the norm in United States corporations.").
    • See Fleischer, supra note 215, at 317 ("Majority voting is clearly becoming the norm in United States corporations.").
    • Supra Note , vol.215 , pp. 317
    • Fleischer1
  • 347
    • 84888502660 scopus 로고    scopus 로고
    • WASH. POST, June 17, 2006, at D1 (noting that fewer than thirty companies had majority vote regimes in place at the start of 2005).
    • See Brooke A. Masters, Proxy Measures Pushing Corporate Accountability Gain Support, WASH. POST, June 17, 2006, at D1 (noting that fewer than thirty companies had majority vote regimes in place at the start of 2005).
    • Proxy Measures Pushing Corporate Accountability Gain Support
    • Masters, B.A.1
  • 348
    • 84888556437 scopus 로고    scopus 로고
    • These percentages include corporations that adopt true majority voting regimes as well as those that have adopted a plurality plus model.
    • See ALLEN, supra note 199, at i. These percentages include corporations that adopt true majority voting regimes as well as those that have adopted a plurality plus model.
    • Supra Note , vol.199
    • Allen1
  • 349
    • 84888514692 scopus 로고    scopus 로고
    • See id. at iii.
    • See id. at iii.
  • 350
    • 84888480452 scopus 로고    scopus 로고
    • See id. at vi.
    • See id. at vi.
  • 352
    • 84888578245 scopus 로고    scopus 로고
    • 2007 PROXY REPORT
    • - 2007 PROXY REPORT, supra note 49, at 17.
    • Supra Note , vol.49 , pp. 17
  • 353
    • 84888495562 scopus 로고    scopus 로고
    • See id.
    • See id.
  • 354
    • 84888497993 scopus 로고    scopus 로고
    • See, e.g., DEL. CODE ANN. tit. 8, § 216(3) Supp.
    • See, e.g., DEL. CODE ANN. tit. 8, § 216(3) (Supp. 2008);
    • (2008)
  • 355
    • 84888509558 scopus 로고    scopus 로고
    • MODEL BUS. CORP. ACT § 7.28(a)
    • MODEL BUS. CORP. ACT § 7.28(a) (2007);
    • (2007)
  • 356
    • 84888570705 scopus 로고    scopus 로고
    • n.7.
    • ALLEN, supra note 199, at 4-5 n.7.
    • Supra Note , vol.199 , pp. 4-5
    • Allen1
  • 357
    • 84888533386 scopus 로고    scopus 로고
    • The California code also requires that a director who does not receive a majority vote be removed from office within ninety days. See CAL. CORP. CODE § 708.5 West Supp.
    • The California code also requires that a director who does not receive a majority vote be removed from office within ninety days. See CAL. CORP. CODE § 708.5 (West Supp. 2009).
    • (2009)
  • 358
    • 84888566027 scopus 로고    scopus 로고
    • These states include Nevada, North Dakota, Ohio, Virginia, and Washington. See
    • These states include Nevada, North Dakota, Ohio, Virginia, and Washington. See ALLEN, supra note 199, at v-vi.
    • Supra Note , vol.199
    • Allen1
  • 359
    • 84888549269 scopus 로고    scopus 로고
    • See COMM. ON CORPORATE LAWS, AM. BAR ASS'N, PRELIMINARY REPORT OF THE COMMITTEE ON CORPORATE LAWS ON VOTING BY SHAREHOLDERS FOR THE ELECTION OF DIRECTORS 7 (discussing reasons for adopting the plurality plus model).
    • See COMM. ON CORPORATE LAWS, AM. BAR ASS'N, PRELIMINARY REPORT OF THE COMMITTEE ON CORPORATE LAWS ON VOTING BY SHAREHOLDERS FOR THE ELECTION OF DIRECTORS 7 (2006), http ://www.abanet.org/buslaw/newsletter/0044/materials/f3. pdf (discussing reasons for adopting the plurality plus model).
    • (2006)
  • 360
    • 84888493210 scopus 로고    scopus 로고
    • See MODEL Bus. CORP. ACT § 10.22(a)(2) Comm. on Corporate Laws, Changes in the Model Business Corporation Act-Amendments to Chapter 7 and Related Provisions Relating to Shareholder Action Without a Meeting, Chapters 8 and 10 Relating to Shareholder Voting for the Election of Directors, and Chapter 13 Relating to Appraisal and Other Remedies for Fundamental Transactions, 61 Bus. LAW. 1427, 1432-33 (2006).
    • See MODEL Bus. CORP. ACT § 10.22(a)(2) (2007); Comm. on Corporate Laws, Changes in the Model Business Corporation Act-Amendments to Chapter 7 and Related Provisions Relating to Shareholder Action Without a Meeting, Chapters 8 and 10 Relating to Shareholder Voting for the Election of Directors, and Chapter 13 Relating to Appraisal and Other Remedies for Fundamental Transactions, 61 Bus. LAW. 1427, 1432-33 (2006).
    • (2007)
  • 361
    • 84888538370 scopus 로고    scopus 로고
    • See MODEL BUS. CORP. ACT § 10.22(c)(1).
    • See MODEL BUS. CORP. ACT § 10.22(c)(1).
  • 363
    • 84888516360 scopus 로고    scopus 로고
    • See DEL. CODE ANN., tit. 8, §
    • See DEL. CODE ANN., tit. 8, § 216 (Supp. 2008).
    • (2008)
  • 364
    • 84888524660 scopus 로고    scopus 로고
    • See DEL. CODE. ANN., tit. 8, § 141(b) Supp.
    • See DEL. CODE. ANN., tit. 8, § 141(b) (Supp. 2008).
    • (2008)
  • 365
    • 84888515931 scopus 로고    scopus 로고
    • See ALLEN, supra note 199, at vi. Such states include Maine, Texas, Utah, and Virginia.
    • Supra Note , vol.199
    • Allen1
  • 366
    • 84888538778 scopus 로고    scopus 로고
    • See id.
    • See id.
  • 367
    • 84888524461 scopus 로고    scopus 로고
    • See As of January 2009, however, the SEC has not acted on the NYSE proposal to amend Rule 452.
    • See Fleischer, supra note 215, at 317. As of January 2009, however, the SEC has not acted on the NYSE proposal to amend Rule 452.
    • Supra Note , vol.215 , pp. 317
    • Fleischer1
  • 369
    • 84888563251 scopus 로고    scopus 로고
    • See NYSE, Inc., Rule 452 available at
    • See NYSE, Inc., Rule 452 (2009), available at http://rules.nyse.com/ nysetools/Exchangeviewer.asp;?SelectedNode=chp-1-2manual=/nyse/ny se-rules/nyse-rules/.
    • (2009)
  • 371
  • 372
    • 84888510718 scopus 로고    scopus 로고
    • See
    • See Black, supra note 51, at 561.
    • Supra Note , vol.51 , pp. 561
    • Black1
  • 373
    • 84888530940 scopus 로고    scopus 로고
    • Id.
    • Id.
  • 374
    • 84888476236 scopus 로고    scopus 로고
    • See 2007 PROXY REPORT, (noting belief that broker votes were decisive in defeating the withhold-the-vote campaign against directors at CVS).
    • See 2007 PROXY REPORT, supra note 49, at 29 (noting belief that broker votes were decisive in defeating the withhold-the-vote campaign against directors at CVS).
    • Supra Note , vol.49 , pp. 29
  • 375
    • 84888577969 scopus 로고    scopus 로고
    • See PROXY WORKING GROUP, NYSE, INC., REPORT AND RECOMMENDATIONS 20-23 available at
    • See PROXY WORKING GROUP, NYSE, INC., REPORT AND RECOMMENDATIONS 20-23 (2006), available at http:/www.nyse.com/pdfs/REVISED-NYSE-Report-6-5-06.pdf.
    • (2006)
  • 377
    • 84888476327 scopus 로고    scopus 로고
    • COMPLIANCE WEEK, Jan.
    • See Martin Lipton, What Directors Can Expect in the New Year, COMPLIANCE WEEK, Jan. 3, 2006, http://www.complianceweek.com/article/2161/what-directore- can-expert-in-the-new-year.
    • (2006) What Directors Can Expect in the New Year , vol.3
    • Lipton, M.1
  • 379
    • 84888480142 scopus 로고    scopus 로고
    • Some proxy access proposals allow corporations to opt into proxy access, hence even proxy access does not promise universal coverage. See and accompanying text. Yet recent proposals allow shareholders the choice of deciding whether to implement proxy access or one that broadly covers all public corporations.
    • Some proxy access proposals allow corporations to opt into proxy access, hence even proxy access does not promise universal coverage. See supra note 94 and accompanying text. Yet recent proposals allow shareholders the choice of deciding whether to implement proxy access or one that broadly covers all public corporations.
    • Supra Note , vol.94
  • 380
    • 84888504653 scopus 로고    scopus 로고
    • See supra Part II.B.
    • Supra Part , vol.II.B
  • 381
    • 84888505081 scopus 로고    scopus 로고
    • (quoting Professor Grundfest, a former SEC commissioner, regarding the significance of majority voting to shareholder empowerment).
    • See Wutkowski, supra note 4 (quoting Professor Grundfest, a former SEC commissioner, regarding the significance of majority voting to shareholder empowerment).
    • Supra Note , vol.4
    • Wutkowski1
  • 382
  • 383
    • 84888492777 scopus 로고    scopus 로고
    • 2007 PROXY REPORT
    • - 2007 PROXY REPORT, supra note 49, at 28.
    • Supra Note , vol.49 , pp. 28
  • 384
    • 84888556437 scopus 로고    scopus 로고
    • 177 n. 156.
    • See ALLEN, supra note 199, at i, 177 n. 156.
    • Supra Note , vol.199
    • Allen1
  • 385
    • 84888568335 scopus 로고    scopus 로고
    • See Verret, supra note 200, at 1035.
    • Supra Note , vol.200 , pp. 1035
    • Verret1
  • 386
    • 84888495123 scopus 로고    scopus 로고
    • See id.
    • See id.
  • 387
    • 33645140387 scopus 로고    scopus 로고
    • Of course, the fact that it is a negative right can be viewed as beneficial to shareholders for at least two reasons. First, it may alleviate any problems associated with gaining shareholder agreement on a particular candidate. Indeed, shareholders have varied, and sometimes divergent, interests. See e.g., 53 UCLA L. REV. (noting the distinct and sometimes conflicting interests among shareholders)
    • Of course, the fact that it is a negative right can be viewed as beneficial to shareholders for at least two reasons. First, it may alleviate any problems associated with gaining shareholder agreement on a particular candidate. Indeed, shareholders have varied, and sometimes divergent, interests. See e.g., Iman Anabtawi, Some Skepticism About Increasing Shareholder Power, 53 UCLA L. REV. 561, 564 (2006) (noting the distinct and sometimes conflicting interests among shareholders);
    • (2006) Some Skepticism about Increasing Shareholder Power , vol.561 , pp. 564
    • Anabtawi, I.1
  • 388
    • 84888509859 scopus 로고    scopus 로고
    • 30 J. CORP. L. (discussing divergent concerns among investors). Their diversity of interests may make it far easier for shareholders to collaborate when the only issue is rejection of an incumbent candidate and the status quo, as opposed to seeking agreement on a particular candidate. Second, majority voting may be ideal because it leaves the choice regarding the nomination of directorial candidates to the discretion of the board, thus alleviating concerns regarding competency.
    • K.A.D. Cámara, Classifying Institutional Investors, 30 J. CORP. L. 219, 229-42 (2005) (discussing divergent concerns among investors). Their diversity of interests may make it far easier for shareholders to collaborate when the only issue is rejection of an incumbent candidate and the status quo, as opposed to seeking agreement on a particular candidate. Second, majority voting may be ideal because it leaves the choice regarding the nomination of directorial candidates to the discretion of the board, thus alleviating concerns regarding competency.
    • (2005) Classifying Institutional Investors , vol.219 , pp. 229-242
    • Cámara, K.A.D.1
  • 389
    • 84888570705 scopus 로고    scopus 로고
    • (describing mechanics of majority voting, which does not impact the ability to nominate a candidate).
    • See ALLEN, supra note 199, at iv (describing mechanics of majority voting, which does not impact the ability to nominate a candidate).
    • Supra Note , vol.199
    • Allen1
  • 392
    • 84888567180 scopus 로고    scopus 로고
    • To be sure, it remains possible that if shareholders are reluctant to use their withhold power, then the threat also may ring hollow.
    • Grundfest, supra note 202, at 865. To be sure, it remains possible that if shareholders are reluctant to use their withhold power, then the threat also may ring hollow.
    • Supra Note , vol.202 , pp. 865
  • 393
    • 84888526346 scopus 로고    scopus 로고
    • See 2007 PROXY REPORT
    • See 2007 PROXY REPORT, supra note 49, at 30.
    • Supra Note , vol.49 , pp. 30
  • 394
    • 84888480736 scopus 로고    scopus 로고
    • Given the high levels of support for majority voting, no one class of shareholder would be sufficient to garner such support. Instead, the nature of the support indicates that different types of shareholders combined to support majority voting.
    • Given the high levels of support for majority voting, no one class of shareholder would be sufficient to garner such support. Instead, the nature of the support indicates that different types of shareholders combined to support majority voting.
  • 395
    • 84888505818 scopus 로고    scopus 로고
    • Director Primacy
    • See Bainbridge, Director Primacy, supra note 9, at 1754-1757
    • Supra Note , vol.9 , pp. 1754-1757
    • Bainbridge1
  • 396
    • 84888517809 scopus 로고    scopus 로고
    • See 2004 PROXY REPORT
    • See 2004 PROXY REPORT, supra note 83, at 28.
    • Supra Note , vol.83 , pp. 28
  • 398
    • 84888527992 scopus 로고    scopus 로고
    • See id. Because of concerns associated with the discretion afforded directors under the plurality plus regime, Institutional Shareholder Services (ISS) began recommending against such voting policies.
    • See id. Because of concerns associated with the discretion afforded directors under the plurality plus regime, Institutional Shareholder Services (ISS) began recommending against such voting policies.
  • 399
    • 84888531969 scopus 로고    scopus 로고
    • See id. at 217.
    • See id. at 217.
  • 400
    • 84888501643 scopus 로고    scopus 로고
    • See id. at iv.
    • See id. at iv.
  • 401
    • 84888496673 scopus 로고    scopus 로고
    • See id. (General Electric Co. and JPMorgan Chase & Co.).
    • See id. (General Electric Co. and JPMorgan Chase & Co.).
  • 402
    • 84888498068 scopus 로고    scopus 로고
    • See id. at iii-iv.
    • See id. at iii-iv.
  • 403
    • 84888526163 scopus 로고    scopus 로고
    • See id. at ii. The trend to move away from the plurality model was sparked by Intel Corporation's adoption of a true majority regime as well as ISS's refusal to support such models.
    • See id. at ii. The trend to move away from the plurality model was sparked by Intel Corporation's adoption of a true majority regime as well as ISS's refusal to support such models.
  • 405
    • 84888517073 scopus 로고    scopus 로고
    • See DEL. CODE ANN., tit 8 § 141(b) Supp. 2008
    • See DEL. CODE ANN., tit 8 § 141(b) (Supp. 2008);
  • 406
    • 84888552301 scopus 로고    scopus 로고
    • MODEL BUS. CORP. ACT § 8.05(e)
    • MODEL BUS. CORP. ACT § 8.05(e) (2007).
    • (2007)
  • 407
    • 84888488661 scopus 로고    scopus 로고
    • (noting resignation policy of General Electric Co.).
    • See ALLEN, supra note 199, at 171 (noting resignation policy of General Electric Co.).
    • Supra Note , vol.199 , pp. 171
    • Allen1
  • 409
    • 84888531604 scopus 로고    scopus 로고
    • In fact, Pfizer adopted majority voting in the form of a policy. See
    • In fact, Pfizer adopted majority voting in the form of a policy. See ALLEN, supra note 199, at ii.
    • Supra Note , vol.199
    • Allen1
  • 410
    • 84888489958 scopus 로고    scopus 로고
    • See id. at iii.
    • See id. at iii.
  • 411
    • 84888478720 scopus 로고    scopus 로고
    • See id. at ii.
    • See id. at ii.
  • 412
    • 84888563780 scopus 로고    scopus 로고
    • Thus, in February 2006, seventy-nine percent of companies adopting a majority vote provision did so by way of a policy. In comparison, by the start of 2008, only forty-two percent of companies chose to adopt a majority voting provision via a policy. See id. at ii.
    • Thus, in February 2006, seventy-nine percent of companies adopting a majority vote provision did so by way of a policy. In comparison, by the start of 2008, only forty-two percent of companies chose to adopt a majority voting provision via a policy. See id. at ii.
  • 413
    • 84888502650 scopus 로고    scopus 로고
    • See MODEL Bus. CORP. ACT § 10.20
    • See MODEL Bus. CORP. ACT § 10.20 (2007).
    • (2007)
  • 414
    • 84888537132 scopus 로고    scopus 로고
    • See DEL. CODE ANN., tit 8, § 216 Supp.
    • See DEL. CODE ANN., tit 8, § 216 (Supp. 2008).
    • (2008)
  • 416
    • 84888549017 scopus 로고    scopus 로고
    • See 2007 PROXY REPORT
    • See 2007 PROXY REPORT, supra note 49, at 17.
    • Supra Note , vol.49 , pp. 17
  • 417
    • 84888555133 scopus 로고    scopus 로고
    • See id. (noting that proposals have been withdrawn primarily because companies have agreed to amend their bylaws and allow for majority voting).
    • See id. (noting that proposals have been withdrawn primarily because companies have agreed to amend their bylaws and allow for majority voting).
  • 418
    • 0347212487 scopus 로고    scopus 로고
    • If proxy access occurs by way of a bylaw, then similar concerns may be raised about such a mechanism. However, the SEC,s latest rule appears to have foreclosed bylaw proposals as a possibility. See and accompanying text. Instead, it is likely that if proxy access occurs, it will be through a more permanent vehicle, such as a change in the proxy rules themselves.
    • If proxy access occurs by way of a bylaw, then similar concerns may be raised about such a mechanism. However, the SEC,s latest rule appears to have foreclosed bylaw proposals as a possibility. See supra notes 126-131 and accompanying text. Instead, it is likely that if proxy access occurs, it will be through a more permanent vehicle, such as a change in the proxy rules themselves.
    • Supra Notes , pp. 126-131
  • 419
    • 84888537159 scopus 로고    scopus 로고
    • See Sjostrom & Kim, supra note 271, at 487-489
    • Supra Note , vol.271 , pp. 487-489
  • 420
    • 84888570705 scopus 로고    scopus 로고
    • (noting that ninety-two percent of majority voting provisions have carve-outs for contested elections).
    • See ALLEN, supra note 199, at iv (noting that ninety-two percent of majority voting provisions have carve-outs for contested elections).
    • Supra Note , vol.199
    • Allen1
  • 421
    • 70349157833 scopus 로고    scopus 로고
    • See Electronic Shareholder Forums, Exchange Act Release No. 57, 172, Investment Company Act Release No. 28,124, 73 Fed. Reg. 4450 Jan. 25, [hereinafter Electronic Shareholder Forums]. The rules took effect February 25, 2008.
    • See Electronic Shareholder Forums, Exchange Act Release No. 57, 172, Investment Company Act Release No. 28,124, 73 Fed. Reg. 4450 (Jan. 25, 2008) [hereinafter Electronic Shareholder Forums]. The rules took effect February 25, 2008.
    • (2008)
  • 422
    • 84888512086 scopus 로고    scopus 로고
    • See id.
    • See id.
  • 423
    • 84888535408 scopus 로고    scopus 로고
    • See 17 C.F.R. § 240.14a-3(a)
    • See 17 C.F.R. § 240.14a-3(a) (2007).
    • (2007)
  • 424
    • 84888484344 scopus 로고    scopus 로고
    • See 17C.F.R. § 240.14a-1(1);
    • See 17C.F.R. § 240.14a-1(1);
  • 425
    • 70349088807 scopus 로고
    • see also Long Island Lighting Co. v. Barbash, 779 F.2d 793, 796 2d Cir. (defining a solicitation as any communication that is part of a continuous plan that will result in a request for a proxy).
    • see also Long Island Lighting Co. v. Barbash, 779 F.2d 793, 796 (2d Cir. 1985) (defining a solicitation as any communication that is part of a continuous plan that will result in a request for a proxy).
    • (1985)
  • 426
    • 84888578168 scopus 로고    scopus 로고
    • See Electronic Shareholder Forums
    • See Electronic Shareholder Forums, supra note 284, at 4453.
    • Supra Note , vol.284 , pp. 4453
  • 427
    • 84888550490 scopus 로고    scopus 로고
    • See id. The rules add a new exemption to Rule 14a-2, making clear that participation in an electronic shareholder forum would not constitute a solicitation so long as the soliciting person, directly or indirectly, does not seek the power to act as a proxy.
    • See id. The rules add a new exemption to Rule 14a-2, making clear that participation in an electronic shareholder forum would not constitute a solicitation so long as the soliciting person, directly or indirectly, does not seek the power to act as a proxy.
  • 428
    • 84888505318 scopus 로고    scopus 로고
    • While the proposing amendment sought comments on whether electronic shareholder forums should supplant the nonbinding shareholder proposal process, the SEC decided against supplanting Rule 14a-8. See id. at 4452. Instead, the communications serve as an additional device for communications between shareholders and managers.
    • While the proposing amendment sought comments on whether electronic shareholder forums should supplant the nonbinding shareholder proposal process, the SEC decided against supplanting Rule 14a-8. See id. at 4452. Instead, the communications serve as an additional device for communications between shareholders and managers.
  • 429
    • 84888572011 scopus 로고    scopus 로고
    • See id. at 4453.
    • See id. at 4453.
  • 430
    • 84888576679 scopus 로고    scopus 로고
    • See id.
    • See id.
  • 431
    • 84888513560 scopus 로고    scopus 로고
    • See id. at 4454.
    • See id. at 4454.
  • 432
    • 84888533637 scopus 로고    scopus 로고
    • See id. at 4453-4454
    • See id. at 4453-4454
  • 433
    • 84888571885 scopus 로고    scopus 로고
    • See id. at 4451.
    • See id. at 4451.
  • 434
    • 84888483544 scopus 로고    scopus 로고
    • 2007 PROXY REPORT, Jackson's campaign stemmed from his frustration with the directors' approval of a CEO salary of $107.5 million despite the company share price falling by almost ten percent.
    • - 2007 PROXY REPORT, supra note 49, at 11. Jackson's campaign stemmed from his frustration with the directors' approval of a CEO salary of $107.5 million despite the company share price falling by almost ten percent.
    • Supra Note , vol.49 , pp. 11
  • 435
    • 84888513769 scopus 로고    scopus 로고
    • See id.
    • See id.
  • 436
    • 84888513470 scopus 로고    scopus 로고
    • See Electronic Shareholder Forums
    • See Electronic Shareholder Forums, supra note 284, at 4457.
    • Supra Note , vol.284 , pp. 4457
  • 439
    • 84888578314 scopus 로고    scopus 로고
    • see also SECURITIES IN THE ELECTRONIC AGE: A PRACTICAL GUIDE TO THE LAW AND REGULATION § 8.04 John F. Olson & Carmen J. Lawrence eds., 3d ed.
    • see also SECURITIES IN THE ELECTRONIC AGE: A PRACTICAL GUIDE TO THE LAW AND REGULATION § 8.04 (John F. Olson & Carmen J. Lawrence eds., 3d ed. 2002).
    • (2002)
  • 440
    • 84888512775 scopus 로고    scopus 로고
    • See Birnhak, supra note 297, at 445-446
    • Supra Note , vol.297 , pp. 445-446
    • Birnhak1
  • 441
    • 84888524170 scopus 로고    scopus 로고
    • See id. at 445.
    • See id. at 445.
  • 443
    • 84888523887 scopus 로고    scopus 로고
    • See id.
    • See id.
  • 444
    • 84888519389 scopus 로고    scopus 로고
    • There is also evidence that staggered boards not only reduce shareholder returns, but also correlate with low firm value. See Bebchuk
    • There is also evidence that staggered boards not only reduce shareholder returns, but also correlate with low firm value. See Bebchuk, supra note 9, at 853.
    • Supra Note , vol.9 , pp. 853
  • 446
    • 84888571741 scopus 로고    scopus 로고
    • See
    • See CLARK, supra note 11, at 95.
    • Supra Note , vol.11 , pp. 95
    • Clark1
  • 447
  • 448
    • 84888560480 scopus 로고    scopus 로고
    • See id.
    • See id.
  • 449
    • 84888485754 scopus 로고    scopus 로고
    • See id.
    • See id.
  • 450
    • 84888541381 scopus 로고    scopus 로고
    • Thus, such proposals received an average shareholder support of 60.5% in 2005,66.8% in 2006, and 63.9% in 2007.2007 PROXY REPORT
    • Thus, such proposals received an average shareholder support of 60.5% in 2005,66.8% in 2006, and 63.9% in 2007.2007 PROXY REPORT, supra note 49, at 6.
    • Supra Note , vol.49 , pp. 6
  • 451
    • 70349162220 scopus 로고    scopus 로고
    • PROXY REPORT, In the first half of 2005, only forty-two proposals were submitted regarding declassification, while eighty-four majority vote proposals were submitted relating to majority voting during that same period.
    • See 2006 PROXY REPORT, supra note 48, at 3-4. In the first half of 2005, only forty-two proposals were submitted regarding declassification, while eighty-four majority vote proposals were submitted relating to majority voting during that same period.
    • (2006) Supra Note , vol.48 , pp. 3-4
  • 452
    • 84888563349 scopus 로고    scopus 로고
    • Id. at 3 chart 1.
    • Id. at 3 chart 1.
  • 453
    • 70349136466 scopus 로고    scopus 로고
    • examining the period from
    • Bebchuk, supra note 9, at 854 (examining the period from 1997-2003).
    • (1997) Supra Note , vol.9 , pp. 854
    • Bebchuk1
  • 454
    • 84888545213 scopus 로고    scopus 로고
    • See id. at 854-855
    • See id. at 854-855
  • 455
    • 70349129751 scopus 로고    scopus 로고
    • PROXY REPORT, About sixty percent of S&P companies have converted to annual elections. Id.
    • See 2007 PROXY REPORT, supra note 49, at 23. About sixty percent of S&P companies have converted to annual elections. Id.
    • (2007) Supra Note , vol.49 , pp. 23
  • 456
    • 84888534605 scopus 로고    scopus 로고
    • See id.
    • See id.
  • 457
    • 84888522701 scopus 로고    scopus 로고
    • See id.
    • See id.
  • 458
    • 84888502027 scopus 로고    scopus 로고
    • Id.
    • Id.
  • 460
    • 84888547696 scopus 로고    scopus 로고
    • See id.
    • See id.
  • 461
    • 70349128348 scopus 로고    scopus 로고
    • PROXY REPORT
    • - 2007 PROXY REPORT, supra note 49, at 3.
    • (2007) Supra Note , vol.49 , pp. 3
  • 465
    • 84888481809 scopus 로고    scopus 로고
    • In fact, Bebchuk's study, pinpointing directors' willingness to ignore nonbinding shareholder resolutions, demonstrates that shareholders' ability to indirectly influence managers is significantly undermined when managers perceive that there are no genuine repercussions for their actions.
    • In fact, Bebchuk's study, pinpointing directors' willingness to ignore nonbinding shareholder resolutions, demonstrates that shareholders' ability to indirectly influence managers is significantly undermined when managers perceive that there are no genuine repercussions for their actions.
  • 466
    • 84888554835 scopus 로고    scopus 로고
    • See and accompanying text.
    • See supra note 135 and accompanying text.
    • Supra Note , vol.135


* 이 정보는 Elsevier사의 SCOPUS DB에서 KISTI가 분석하여 추출한 것입니다.