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What impact do shareholder resolutions have when the votes in favor are so low and companies are not bound by the resolution process?

April 26, 2017bound companies favor impact low process resolution resolutions shareholder votes

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What impact do shareholder resolutions have when the votes in favor are so low and companies are not bound by the resolution process?

1 Answer

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Traditionally, shareholder resolutions related to social issues do not receive high percentages of votes. However, the resolution brings management’s attention to a social or environmental issue that may expose the company to financial and reputational risk. Addressing the social or environmental issue in collaboration with stakeholders can be an effective way of managing this risk.