Shareholder proposals are considered to be the strongest of all shareholder voting tactics.

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Shareholder proposals, sometimes referred to as shareholder resolutions, have traditionally been among the weakest of shareholder voting tactics. A shareholder proposal is a suggestion about a broad company policy or procedure that is submitted by a shareholder. The proposal cannot be about the ordinary business operation of the corporation. It must concern something that affects all shareholders. A proposal to hire or fire a particular employee would not qualify, whereas a proposal to amend the corporate charter would. The rules also prohibit proposals that concern only dividend payments.

Shareholder Proposals Are Considered to Be the Strongest of All