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Karen Hsu Kelley and Mario Ponce Quoted in Agenda

06.12.19

Corporate Partners Karen Hsu Kelley and Mario Ponce were quoted in an Agenda article titled “‘Chaos Move’: Special Meetings Gain Support,” which addresses shareholder proposals involving the right to call special meetings. These rights frequently go unused and Mario explains this is partially due to hurdles shareholders face, such as proxy solicitation rules on communicating with stockholders, poison pill rules on acting as a group and 13D rules involving forming a group. Certain boards may also prove to be an obstacle for shareholders, but Karen says that “[b]oards shouldn’t brush proposals on special meeting rights off; they are getting a fair amount of traction. They should get ahead of what they think the votes will be and consider if it makes sense to put forth an alternative proposal with a different threshold.”

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