SEC Provides Guidance for Adopting Virtual Shareholder Meetings and Engagements; Nasdaq Rules allow Virtual Meetings
On March 13, the SEC published staff guidance to facilitate the ability of companies affected by COVID-19 to hold annual shareholder meetings and continue important shareholder engagements. The guidance covers:
- changing the date, time and location of shareholder meetings;
- switching to a virtual or hybrid annual meeting format; and
- allowing alternative means for presentation of shareholder proposals.
Under the guidance, affected companies can announce changes in meeting times, dates, locations or formats through SEC filings without incurring the cost of additional physical mailing of proxy materials.
Nasdaq permits the use of webcasts instead of, or in addition to, a physical meeting, provided such webcasts are permissible under the relevant state law. For additional information about Nasdaq’s rule, please see our Frequently Asked Question or contact continuedlisting@nasdaq.com.
For more information about the SEC’s guidance, read the SEC’s press release and the Staff Guidance.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.