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If you own shares, you can grant the
proxies to other volunteers as part of the
proxy
transfer
trials. They don't have to be shares of
corporations. They could be shares of mutual funds,
exchange-traded funds, American depository receipts
or other investment vehicles. We want to perform
proxy trials for all these.
Proxies can be assigned for various
purposes, say to have a representative attend the
annual shareholders meeting on your behalf, or to
submit a shareholder proposal on your behalf.
If you have never assigned a proxy before, you
probably want to start with just assigning a proxy
so someone can attend and vote at the shareholder
meeting on your behalf. This webpage explains how.
To get started, we first need to
match your individual stock holdings with volunteers who will
serve as proxies. Indicate share
holdings for which you would like to assign proxies by filling
in a spreadsheet. Right click on the following link
to download that spreadsheet to your hard drive.
proxy_trials.xls
Right now, the spreadsheet consists
of just a few column headers, but you can fill it in
by entering information on each of your holdings.
Here are detailed instructions.
Starting with row 2, enter your
holdings, with one holding per row. There are six
pieces of information you need to enter for each holding:
Company
Name: Enter the name or the corporation,
mutual fund or other entity whose shares you own.
For an investment fund, also indicate the firm that
manages it, e.g. "Spartan 500 Index Fund - Investor
Class (Fidelity Investments)."
Number
of Shares Held: This information is
important because certain actions that we may ask
proxies to perform—such as submitting shareholder
proposals—require that a minimum number of shares be
held.
2008
Meeting Date: Enter the date of the
annual shareholder meeting in mm/dd/yyyy format.
The date likely appears on the first page of the
proxy materials you should have received. Proxy
materials are usually also downloadable from the
investor relations section of the issuer's website.
If all else fails, call the issuer's investor
relations department and ask them. If the meeting
date has not yet been scheduled, ask the investor
relations department generally when the meeting will
be held, and enter this information in the
spreadsheet (e.g. "July 2008"
or "Fall 2008").
2008
Meeting Location: Enter the city where
the annual shareholder meeting will be held, e.g.
"Seattle, WA" or "Sydney, Australia." This
information can be found in the same manner as the
meeting date.
Deadline
for Shareholder Proposals: For US-based
issuers subject to SEC regulations, enter the
deadline for submitting shareholder proposals. This
can usually be found in the proxy materials
distributed for the preceding shareholder meeting—
often on one of the last pages.
Assignee
Instructions: You can instruct a proxy on
what actions to take on your behalf, or you can
leave that to the discretion of the proxy. For the
proxy trials, we recommend not providing any
instructions. However, you have the option to do so.
Enter in this portion of the spreadsheet an
indication if you have instructions. Don't give
details at this point. You can provide them directly
to the proxy later. For now, just indicate the
nature of the instructions, e.g. "voting
instructions" or "read a statement for me at the
shareholder meeting."
Once you have completed the
spreadsheet, save it to your hard drive and e-mail a
copy to Glyn Holton at
glyn@isuffrage.org. Glyn will integrate your
information into a master spreadsheet listing
everyone's holdings. That master spreadsheet is
available to volunteers who want to serve as proxies.
Using the spreadsheet, they choose opportunities
they are interested in and contact Glyn about those
opportunities.
When a volunteer contacts Glyn about
serving as proxy for one of your holdings, Glyn will
pass the information on to you. Get in touch with
the individual. Explain instructions, if any,
you want them to carry out (e.g. how you want them
to vote the shares, etc.). You don't have to accept
the individual as your proxy, so make sure both
parties are comfortable with the relationship. If
you decide to move forward, your next step is to
legally assign the proxy. Here is how.
First of all, brace yourself. While
assigning a proxy may be easy in some cases, it is
likely that you will encounter roadblocks and
misinformation in others. This is why we are
conducting proxy trials! The whole system is in
disrepair, and proxy trials are the first step
toward fixing it. You will want to be patient,
persistent, cordial but insistent, as appropriate,
along the way. If a broker says he can't help you,
say "then let me speak to your manager." If the
manager refuses to help, say "I have a legal right
to appoint whomever I want as my proxy." If that
doesn't work, call the legal department and complain
that you are "being disenfranchised." Avoid threats,
and always be professional. Don't mention the
Investor Suffrage Movement—you don't want special
treatment because there is an activist group
standing behind you. For now, you are just an
individual trying to appoint a proxy of your
choosing. If all your efforts fail, let us know, and
we will work with you to determine an appropriate
course of action.
We can't tell you exactly how to
appoint a proxy. To some extent, the proxy trials
are about finding out how. Here is some general
guidance.
For corporate stock, there are two
ways your ownership interest may be recorded, and
this will determine how you appoint a proxy. You may
be the owner of record. This means that, in the
corporation's official list of shareholders, your
name appears. If this is the case, you should
contact the corporation's investor relations
department and ask them how you go about appointing
a proxy. On the other hand, you may own shares in
street name. This means that your broker is the
owner of record, and they hold the stock on your
behalf. In this case, the broker has the legal right
to appoint a proxy, but you have the legal right to
tell them whom to appoint. Accordingly, if you hold
shares in street name, work with your broker to
appoint a proxy. Note that the broker will likely
have procedures in place to appoint you
the proxy. This is fairly routine, as shareholders
sometimes want to attend a shareholder meeting, and
the broker (if it is the owner of record) must
assign the proxy to them so they may do so. This is
not what you want. You want the proxy assigned to a
third party. The broker may not have
experience doing this, so be patient with them. To
find out whether you are the owner of record or hold
shares in street name, call your broker.
For shares of a mutual fund or other
investment vehicle, there are also two
possibilities. You may have purchased the shares
directly from the mutual fund. In that case, contact
the mutual fund company. Otherwise, you may have purchased
the shares through an investment advisor. If that is
the case, start with the investment advisor. In
either case, don't hesitate to contact the mutual
fund company's legal department for help. If an
investment advisor works for a brokerage or other
financial institution, you may also contact that
firm's legal department.
When you make the proxy assignment,
specify that it be for three months (or long enough
to include the annual shareholder meeting, if the
meeting is more than three months away.) Throughout
the process, keep in touch with your would-be
proxy. Let him or her know when (if) the proxy
assignment is complete, and provide whatever documentation
your proxy will need of the
assignment.
Throughout the process, maintain
careful notes. Record names, titles and phone
numbers. If legal roadblocks are thrown up, ask that
these be explained to you in laymen's terms, and
record what you are told. Ultimately, the notes you
keep are the goal of the proxy trials. They will
inform us and help us plan next-steps as we try to
repair the proxy machinery.
Your last step is to report back to
us. The best time to do so is as soon as the proxy
assignment goes through (or you give up trying).
Compile your notes into an
e-mail, and send it to Glyn. Include an account
of what transpired—what worked and what didn't.
Describe any lessons you learned that will be
helpful for future attempts to grant proxy rights.
What laws or applicable regulations did you learn
about? Also, what aspects of the process did you
find most frustrating or in need of fixing? We will
be filing shareholder proposals later this year to
streamline the proxy process at certain
corporations. Do you have ideas about what aspects
of the process we might try to fix through those
proposals?
Thanks for your participation!
Report your results.

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