Apple Amends Company Bylaws to Offer Proxy Access

Apple Amends Company Bylaws to Offer Proxy Access

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Apple on Monday amended its company bylaws to allow 'proxy access' making it easier for long-time shareholders to nominate a director for its board, reports the WSJ.

In a securities filing, Apple said its board of directors had adopted amended bylaws Monday that allow a shareholder, or a group of up to 20 shareholders, holding 3% of its shares continuously for three years to include board nominees in the company’s annual proxy statement.

The bylaw only allows shareholders to nominate up to 20% of Apple's directors. Currently the company has eight, so shareholders could only nominate one director.

Proxy access makes it easier for shareholders to affect change on the company's board. Soare nearly 10% of the companies in the S&P 500 have adopted or are committed to adopting proxy access.

Back in March, a shareholder proposal for Apple to adopt proxy accesses gained 39% support. James McRitchie, a California investor who sponsored the proposal, was happy with the change disappointed that it was limited to 20%.

“One person on a board could be silenced,” Mr. McRitchie said. “If you’re a board member and no one else would second a motion,” it would be hard to be effective.

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Apple Amends Company Bylaws to Offer Proxy Access