ARTICLE
4 February 2013

Maintaining Control When Shareholders Are Virtual

MF
Morrison & Foerster LLP

Contributor

Known for providing cutting-edge legal advice on matters that are redefining industries, Morrison & Foerster has 17 offices located in the United States, Asia, and Europe. Our clients include Fortune 100 companies, leading tech and life sciences companies, and some of the largest financial institutions. We also represent investment funds and startups.
Amid shareholder demands for greater engagement, Internet-based annual meetings may enhance accessibility and save costs.
United States Corporate/Commercial Law

Amid shareholder demands for greater engagement, Internet-based annual meetings may enhance accessibility and save costs. Registered participants can follow presentations, ask questions, and exercise real-time voting. But virtual shareholder meetings may pose “greater risks of surprises,” especially on contentious issues, since shareholders may be less deferential while sitting shrouded at their home or office, says Morrison & Foerster partner Brandon Parris. That’s why the design of these meetings is critical, adds Morrison & Foerster partner David Lynn, co-chair of Morrison & Foerster’s Public Companies and Securities Practice. Management must balance its impulse to retain control of the meeting with the need to permit an appropriate level of interactivity.

Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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