3 ms·
It does and it doesn’t. Can you go to the shareholder meeting and speak? Sure. But your time will probably be limited and if you ask something contentious you’r
by elliekelly 6y ago
It does and it doesn’t. Can you go to the shareholder meeting and speak? Sure. But your time will probably be limited and if you ask something contentious you’re likely to get a politicians non-answer.
For anything more meaningful you would need to meet one of the three criteria of Exchange Act Rule 14a-8 which the SEC recently “modernized”.[1] It used to be a requirement that a shareholder own $2,000 or 1% of the outstanding shares in order to bring a proposal. The new Rule is you must own $2,000 or 1% of the outstanding shares for three or more years in order to bring a proposal. There’s also criteria for a shareholder to bring a proposal in a shorter amount of time if they own a higher dollar amount of shares but I believe the shortest time period under the new rule is one year.
So one share probably isn’t going to cut it for most public companies other than AMZN and Berkshire Hathaway.
And even if you meet the requirements to bring a shareholder proposal it would very likely require advanced notice which is a whole big thing. Especially if management doesn’t agree with whatever it is you’re trying to do.
So I guess the answer is no, securities law is a lot more paperwork and a lot less exciting than in the movies.
[1]https://www.sec.gov/news/press-release/2020-220 https://www.sec.gov/news/press-release/2020-220
Edit: It just occurred to me that your question about standing at a shareholder meeting is different from the topic of the article which is private lawsuits alleging securities fraud. Management’s duty is to the shareholders (collectively) so the “own one share” question doesn’t really apply the same way. You’d need to show that you purchased or sold the security in reliance on the fraudulent information (or undisclosed information).