Has Responsible Wealths proposal considered the market value of 1% of the outstanding stock of major corporations?
It is unrealistic to assume that there are 25 individuals whose combined holdings reach that amount. Few Institutional Investors own such amounts. (Our letter of comment dated May 26, 2003 deals with expected non-participation of Institutional Investors other than pension funds.) In effect, the suggestion by Responsible Wealth exempts the largest Companies. Pejorative phrasing aside, why shouldn’t the Director-nomination process be used as a “takeover device”? Both Responsible Wealth and the Petition suggest a one-year stock ownership period to qualify to nominate Director-candidates. “Takeover” attempts, when they occur, do not occur in a vacuum. Opposing views are publicly aired. Nothing would prevent incumbent Directors from revealing whether their opponent was allegedly engaged in an attempted “takeover.” The other side could respond. The opposing parties could solicit and compete for approval from Shareholders. Shareholders would vote on the issue. A “takeover” would occur if, and
