Blackout Media Corp (BKMP)

[apd trader]

How to File a Shareholder Resolution

Filing a shareholder resolution at a public company is a relatively simple process. Below are the answers to a few questions about how to file a shareholder proposal.

Am I Eligible?

The Securities and Exchange Commission (SEC), which is charged with overseeing the shareholder process, requires that shareholders own at least $2,000 worth of shares in a company (or 1% of all shares) to file a shareholder proposal. In addition, you must own the stock for at least one year.

When Must I File the Shareholder Proposal?

To file a shareholder proposal, you must submit the proposal to a company by the deadline stated in the company's proxy statement, usually six months before the annual meeting. The proxy statement also describes the procedure for submitting the proposal.

Is the Company Required to Accept My Shareholder Proposal?

In general, the SEC has allowed shareholders to submit proposals to limit or disclose executive compensation issues. However, the proposal can be no longer than 500 words.

The SEC allows companies to omit shareholder proposals for a number of reasons. A company can omit a proposal that deals with the ordinary business operations of the company if the proposal is similar to proposals in prior years that did not receive a certain number of votes or if the proposal requires the company to do something illegal.

In addition, a company can omit a proposal that contains false information and if the proposal relates to a personal grievance against the company.

Are There Other Restrictions?

Section 14A of the Securities and Exchange Act provides the legal and regulatory framework for the shareholder proposal process. The regulations detailing the shareholder proposal process are available from the SEC. You can also get a copy via the Internet at http://www.sec.gov/.