{"id":4446,"date":"2007-06-11T18:24:34","date_gmt":"2007-06-11T18:24:34","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2007\/06\/should_brokerage_firms_continu"},"modified":"2021-09-20T15:41:31","modified_gmt":"2021-09-20T20:41:31","slug":"should-brokerage-firms-continu","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/should-brokerage-firms-continu\/","title":{"rendered":"Should Brokerage Firms Continue to Vote Their Clients Shares Without Permission, Including for Corporate Directors?"},"content":{"rendered":"<p>\t\t\t\tFew stockholders realize that when their shares of stock are held at a brokerage firm that firm can vote their shares without a &#8220;proxy&#8221;.  Thus, if an investor owns 100 shares of XYZ stock held at ABC brokerage firm, without the investors permission, ABC firm can cast the investors vote in annual meetings of XYZ, including for XYZ&#8217;s directors.<\/p>\n<p>At a recent meeting at the SEC on the long debated issue, Catherine R. Kinney, president and chief executive officer of the New York Stock Exchange, announced that the NYSE has agreed to amend its rules to eliminate broker discretionary voting, but only in the election of directors.  There is no proposal to stop brokerage firms from voting their clients&#8217; shares, without permission, on other matters.<\/p>\n<p>A NYSE rule states that brokers may vote on &#8220;routine&#8221; proposals if the beneficial owner of the stock has not provided specific voting instructions to the broker 10 days before the voting date. &#8220;Routine&#8221; proposals have been interpreted to include such important votes as election of directors.  The proposed change will consider election of directors as &#8220;non-routine.&#8221; The change was previously proposed but revised to exclude such voting by mutual funds.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/should-brokerage-firms-continu\/\"  title=\"Continue Reading Should Brokerage Firms Continue to Vote Their Clients Shares Without Permission, Including for Corporate Directors?\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Few stockholders realize that when their shares of stock are held at a brokerage firm that firm can vote their shares without a &#8220;proxy&#8221;. Thus, if an investor owns 100 shares of XYZ stock held at ABC brokerage firm, without the investors permission, ABC firm can cast the investors vote in annual meetings of XYZ, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3774,3801],"tags":[],"class_list":["post-4446","post","type-post","status-publish","format-standard","hentry","category-broker-dealers","category-sec"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Should Brokerage Firms Continue to Vote Their Clients Shares Without Permission, Including for Corporate Directors? &#8212; Investor Lawyers Blog &#8212; June 11, 2007<\/title>\n<meta name=\"description\" content=\"Few stockholders realize that when their shares of stock are held at a brokerage firm that firm can vote their shares without a &quot;proxy&quot;. Thus, if an &#8212; June 11, 2007\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/should-brokerage-firms-continu\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Should Brokerage Firms Continue to Vote Their Clients Shares Without Permission, Including for Corporate Directors? &#8212; Investor Lawyers Blog &#8212; June 11, 2007\" \/>\n<meta name=\"twitter:description\" content=\"Few stockholders realize that when their shares of stock are held at a brokerage firm that firm can vote their shares without a &quot;proxy&quot;. Thus, if an &#8212; June 11, 2007\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Should Brokerage Firms Continue to Vote Their Clients Shares Without Permission, Including for Corporate Directors? &#8212; Investor Lawyers Blog &#8212; June 11, 2007","description":"Few stockholders realize that when their shares of stock are held at a brokerage firm that firm can vote their shares without a \"proxy\". Thus, if an &#8212; June 11, 2007","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/should-brokerage-firms-continu\/","twitter_card":"summary_large_image","twitter_title":"Should Brokerage Firms Continue to Vote Their Clients Shares Without Permission, Including for Corporate Directors? &#8212; Investor Lawyers Blog &#8212; June 11, 2007","twitter_description":"Few stockholders realize that when their shares of stock are held at a brokerage firm that firm can vote their shares without a \"proxy\". Thus, if an &#8212; June 11, 2007","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/should-brokerage-firms-continu\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/should-brokerage-firms-continu\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Should Brokerage Firms Continue to Vote Their Clients Shares Without Permission, Including for Corporate Directors?","datePublished":"2007-06-11T18:24:34+00:00","dateModified":"2021-09-20T20:41:31+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/should-brokerage-firms-continu\/"},"wordCount":445,"articleSection":["Broker-Dealers","SEC"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/should-brokerage-firms-continu\/","url":"https:\/\/www.investorlawyers.com\/blog\/should-brokerage-firms-continu\/","name":"Should Brokerage Firms Continue to Vote Their Clients Shares Without Permission, Including for Corporate Directors? &#8212; Investor Lawyers Blog &#8212; June 11, 2007","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2007-06-11T18:24:34+00:00","dateModified":"2021-09-20T20:41:31+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"Few stockholders realize that when their shares of stock are held at a brokerage firm that firm can vote their shares without a \"proxy\". 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