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Re: rmarchma post# 20241

Sunday, 04/20/2003 12:07:51 AM

Sunday, April 20, 2003 12:07:51 AM

Post# of 433223
Ronny, Regarding Shareholder Proposals:

Shareholder proposals are regulated by Rule 14a-8 of the SEC Act of 1934:

http://www.law.uc.edu/CCL/34ActRls/rule14a-8.html

You, and anyone thinking about submitting proposals, will find this rule interesting and very limiting. Some examples:

How many proposals may I submit: Each shareholder may submit no more than one proposal to a company for a particular shareholders' meeting.

Depending on the subject matter, some proposals are not considered proper under state law if they would be binding on the company if approved by shareholders. In our experience, most proposals that are cast as recommendations or requests that the board of directors take specified action are proper under state law

Selected bases to exclude:

Relevance: If the proposal relates to operations which account for less than 5 percent of the company's total assets at the end of its most recent fiscal year, and for less than 5 percent of its net earning sand gross sales for its most recent fiscal year, and is not otherwise significantly related to the company's business

Management functions: If the proposal deals with a matter relating to the company's ordinary business operations

Relates to election: If the proposal relates to an election for membership on the company's board of directors or analogous governing body





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