Using 'Plain English' in Proxy Proposals
Norman Otto Stockmeyer
Thomas M. Cooley Law School
Michigan Lawyers Weekly, Vol. 14, No. 26, May 1, 2000
Gaining access to a corporation's annual meeting proxy statement is the only practical way to communicate with fellow shareholders on issues of corporate policy. But many proxy proposals make for difficult reading. Shareholders aren't likely to vote in favor of a proposal they can't understand. The author drafted a shareholder proposal in plain-English for inclusion in the annual meeting proxy statement of Michigan's largest bank. On the Flesch readability scale, the proposal scored 51. That's on a par with Time and Newsweek. In contrast, a representative sample of the bank's previous year's proxy statement scored -12 (more difficult than the Harvard Law Review). This article explains the author's drafting considerations and the result he achieved (the bank voluntarily adopted the author's proposal, avoiding a proxy contest).
Number of Pages in PDF File: 3
Keywords: Plain English, drafting documents, proxy proposalsAccepted Paper Series
Date posted: October 22, 2008
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo4 in 3.219 seconds