A shareholder proposal is a document created by one or more shareholders of a particular company to submit it in the company’s annual general meeting with a definite purpose. The company’s management can include the proposal in the proxy statement during the meeting if the proposal content is made known earlier and this way other shareholders get a chance to vote for or against the shareholder proposal in the meeting. The content of the shareholder proposal usually deals with matters like management compensation, a particular policy, voting rights etc. Shareholders who have 1% stock in the company’s shares for one year at least can submit a proposal.

Sample Shareholder Proposal:

Proposal submitted by: Karen Armstrong

Address: 533 Kemper Avenue, Oakland

Proposal prepared on: February 12, 2012

Proposal submitted to: Jonathan Jennings

President, Kane Capital

Address: 420 Kendalwood Lane, Oakland

Proposal submitted on: February 14, 2012

Proposal name: Increase corporate charitable contribution by 2%

Purpose: The primary purpose of creating this proposal is to convince the management that the company’s charitable contributions may be increased by 2% annually

Details of Shareholder Proposal:

  • The company’s profits have increased by 22% this financial year and the corporate contribution to charity can be increased by at least 2%
  • This will not only improve the company’s image but also help us contribute towards the society
  • A corporate charity body will be created headed by one of the management members in order to supervise and keep track of the charitable contributions
  • The money will be given in donations as a lump sum amount.

Funds requested: $50,000