October 7, 2007
Dear Chairman Cox:
I am writing today to ask the Commission to narrow the use of a tool that has been abused by many shareholders: the nonbinding shareholder proposal.
Too many shareholder proposals have been used to promote political --- as opposed to company related issues.
If shareholders wish to oppose the putative political policies of a corporation in which they own stock --- let them sell their holdings, but not intimidate executives and the board into policies that do necessarily fulfill executive and board duties to shareholders.
A few small investors use the nonbinding shareholder proposal process to distort the governance process within the corporation. This has facilitated an over reaction on the part of many executives and board members to cater to the smallest of extremist shareholders, who do not always have the corporation’s best interests at heart (nor much money at risk) --- but do have a political agenda to push.
Please let me know what action you intend to take on this issue.
Yours Sincerely,
Steve Marks Franklin, WI Steve Marks