Using our Economic Power: Shareholder Resolutions

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Using our Economic PowerShareholder Resolutions

• ELCA Corporate Social Responsibility

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Problem within Society

• Research and identify those corporations which
  may have a connection to the problem
  
  

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Addressing a company with concern

• Write a letter ?
• ? Company responds with a call or letter
• ? Meet with company via conference call or in
  person
• ? Company changes concerned behavior

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Negative response from company

• If meeting doesnt get the desired change or the
  company never responded to the letter, move to
• ? Finding ecumenical partners who may want to
  join in filing a resolution

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Filing a shareholder resolution

• Must have 2000 worth of company stock
• Must have owned stock prior 12 months
• Promise to own through the annual meeting

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Response to filing resolution

• ? Meet with company via conference call or in
  person
• ? Company changes concerned behavior
  
  
  
  
• 
  OR
  
• 
  

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Company doesnt feel it should change

• Files a Security and Exchange Commission (SEC)
  challenge usually for the following
• ? Substantially implemental or
• ? Ordinary business

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Shareholders respond

• By writing the SEC why they think the resolution
  should stand
• ? If SEC sides with company, it goes no further
• ? If SEC sides with shareholders, it will appear
  on company proxy ballot

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When SEC sides with shareholders

• ? Usually the company is willing to meet via
  conference call or in person
• ? If company changes concerned behavior
  shareholders may withdraw resolution
• 
  
• 
  

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But.

• If the company doesnt meet with shareholders or
• If company doesnt change requested behavior or
• If company never responded to the filed
  resolution
• THEN
  
• 
  

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Then.

• The resolution must appear in the companys proxy
  book. It will include the shareholders filed
  resolution and the companys written rebuttal.
• The shareholders vote by mail, phone, internet,
  or in person at the annual meeting.
• 
  

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Annual Meeting

• At the meeting the shareholders get to move and
  second the resolution. The company may limit time
  or give shareholder 5 minutes.
• 
  

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Vote

• The results of the vote is announced
• In order for the shareholders to bring issue up
  again the vote must be
• ? 3 - 1st year a resolution is filed
• ? 6 - 2nd year
• ? 10 - 3rd year

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• Our Goal Corporate Change
  
• Our Strategy
• The economic power we have as shareholders

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