WLF reports a great win for common sense:
On April 14, 2015, the U.S. Court of Appeals for the Third Circuit overturned a lower court decision that would have required publicly traded companies to include frivolous and inappropriate shareholder proposals in proxy statements at the company’s expense—and, therefore, at the expense of every other shareholder. In a concise, two-page order, the appeals court vacated the district court’s order, concluding that “Wal-Mart may exclude Trinity’s Proposal from its 2015 proxy materials.” The decision was a victory for WLF, which filed a brief in the case arguing that the proposal was not only excludable under the SEC’s “ordinary business” exception, because it related to Wal-Mart’s ordinary business matters, but the proposal was so vague that neither the company nor its shareholders would be able to determine with any reasonable certainty what actions the proposal would require. The appeals court will issue a more detailed opinion explaining its decision in the coming weeks.
See also:
3rd Circuit Permits Wal-Mart to exclude Trinity Wall St.’s S/H Proposal from Its 2015 Proxy Materials http://t.co/Z99ICnfqIv $WMT #corpgov
— Prac Law Cap Mkts (@PracLawCapMkts) April 14, 2015
3rd Circuit sides w/ Walmart (v. Trinity) over its to make mgmt decisions per "ordinary business exclusion." Order: http://t.co/1oBkdswFai
— Business Roundtable (@BizRoundtable) April 14, 2015
