Q: I have read about the SEC decision to allow e-proxies and I understand the impact this will have on paper and mailing costs. But I don't fully understand how e-proxies might drive greater shareholder activism. Can you explain it?
A: The new SEC rule that goes into effect on July 1 this year will not only allow companies to distribute material to investors via the internet upon request, but also fuel greater shareholder activism when it comes to their ability to exert influence on matters requiring shareholder approval. The reason is simple: if large shareholders have governance plans different from boards and management teams at the companies they own, it will be cheaper for them to distribute alternative proxy materials
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Hulus Alpay
Hulus Alpay is senior vice president of New York-based IR and PR firm Makovsky & Company.
