CII Seeks to File Amicus Brief Asking Delaware Supreme Court Not to Dismiss Derivative CaseCII October 19 filed a motion to permit it to submit an amicus brief in California State Teachers’ Retirement System v. Alvarez, No. 295, 2016, in the Delaware Supreme Court. A corporate bribery scandal and subsequent cover up at Wal-Mart Stores’ Mexican subsidiary led to two competing shareholder derivative suits being filed against Wal-Mart directors, in Arkansas and Delaware. While the Delaware plaintiffs put their litigation on hold to obtain company books and records that could strengthen their case, the federal district court dismissed the Arkansas plaintiffs’ claim. When the Delaware plaintiff’s returned to court, Wal-Mart directors contended the issue had been resolved in the Arkansas case. Initially, the Delaware Chancery Court agreed and dismissed the case, but then issued a supplemental opinion reversing the dismissal. CII’s brief argues that the rule adopted in the reversal “is virtually the only way to ensure that Delaware shareholders will retain a meaningful opportunity” to litigate meritorious derivative claims in a thorough and thoughtful manner.
CII Publishes New Guide to Effective Shareholder MeetingsRead CII’s new guide to effective shareholder meetings, virtual and in-person, “Build a Better Meeting: Five Tips for U.S. Companies Looking to Convene a Shareholder-oriented Shareholder Meeting.” A physical meeting remains a cornerstone of effective corporate governance, and new technology opens the possibility of broader participation. “Build a Better Meeting” provides straight-forward guidance on how companies can strengthen the integrity of this time-honored and valuable event, and ensure its relevance for shareholders.
Investor Groups Refute Myth of Shareholder Proposal “Overload”In an October 11 meeting with SEC Chairman Jay Clayton, representatives of CII and other investor groups provided data refuting the notion that shareholder proposals are excessively burdensome for U.S. public companies. Their research on proposals filed in 2004-2017 shows that most U.S. companies do not receive shareholder proposals: On average, 13% of Russell 3000 companies received a shareholder proposal in a particular year. Other findings: Large companies were far more likely to receive shareholder proposals, less than 9% of Russell 3000 companies that had an IPO since 2004 have received a shareholder proposal, and few proposals that receive low votes are resubmitted for a third or fourth time.
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Fair Financial RulesSensible, effective rules safeguard investors and strengthen markets.
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News & Highlights
- Oct. 19, 2017 - Paul Singer: Activists and Index Funds are Natural Allies
- Oct. 18, 2017 - Baupost's Klarman Resists Calls to Wipe out Puerto Rico Debt
- Oct. 18, 2017 - Wall Street Poised to Get a Key SEC Reprieve Over MiFID
- Oct. 18, 2017 - Rio Tinto Charged with Fraud in US and Fined £27.4m in UK
- Oct. 17, 2017 - Big U.S. Stock Exchanges Ask SEC to Hold Off on Fee Cap Plan
- Oct. 16, 2017 - Senate Panel Sets Hearing Next Week on Pair of SEC Nominees
- Oct. 16, 2017 - Dual-class Shares Should Build in Expiration Plan
- Oct. 16, 2017 - Silicon Valley Vs. Wall Street: Can the New Long-Term Stock Exchange Disrupt Capitalism?
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