Journal Bull999999's Journal: Shareholder Resolution: A voice for the small investors
Being a small investor doesn't mean that you don't have a voice in how mega-corps operate. One of highly effective tools used by individual investors is the shareholder resolution, which has been increasing over the years. According to the Investor Responsibility Research Center, number of shareholder resolutions has gone from 721 in 1999 to 1,163 so far in 2004.
It doesn't take much to become eligible to submit a shareholder resolution. All it takes is at least $2,000 worth of stock held for at least a year. Usually, the deadline for submitting such a resolution is 6 months before the annual shareholders meeting.
You can only file one resolution per company per year, and it has to be 500 words or less. You'll also need to keep it businesslike and factual; the usual Slashdot rants like "You are a moron if you don't vote for my proposal" or "99% of consumers like my idea just because I said so" won't cut it. Most of the shareholders of the mega-corps are not going to be geek and will have a different beliefs and thoughts, so it is your job of convincing them of your idea by using facts and not insulting their intelligence.
While resolutions that are passed by shareholders are not binding to the company, but most of the board members and officers will pay attention to it. For example, you don't have to follow the suggestions made by your boss, but not following it may result in you getting demoted/fired later on.
You can learn more about shareholder resolutions at NORTHWEST CORPORATE ACCOUNTABILITY PROJECT
It doesn't take much to become eligible to submit a shareholder resolution. All it takes is at least $2,000 worth of stock held for at least a year. Usually, the deadline for submitting such a resolution is 6 months before the annual shareholders meeting.
You can only file one resolution per company per year, and it has to be 500 words or less. You'll also need to keep it businesslike and factual; the usual Slashdot rants like "You are a moron if you don't vote for my proposal" or "99% of consumers like my idea just because I said so" won't cut it. Most of the shareholders of the mega-corps are not going to be geek and will have a different beliefs and thoughts, so it is your job of convincing them of your idea by using facts and not insulting their intelligence.
While resolutions that are passed by shareholders are not binding to the company, but most of the board members and officers will pay attention to it. For example, you don't have to follow the suggestions made by your boss, but not following it may result in you getting demoted/fired later on.
You can learn more about shareholder resolutions at NORTHWEST CORPORATE ACCOUNTABILITY PROJECT
