The Lemon Fool

A report (e.g. RNS) of a shareholder vote shows votes For, Against, and (sometimes) Abstain/Withheld.

Except ... when one column is ...

Votes For (or at the Chairman's discretion)

What does Chairman's discretion actually mean in this context? Have the non-votes of a silent majority been co-opted as implied Yes votes?

What it says, I think.

The shareholder has appointed the Chairman of the meeting as his proxy and given him discretion as to how the vote is cast.

TJH

tjh290633 wrote:What it says, I think.

The shareholder has appointed the Chairman of the meeting as his proxy and given him discretion as to how the vote is cast.

TJH

OK, thanks. Can I try rephrasing the underlying question?

Is it possible that shareholders have given that discretion implicitly, without being aware of it? Some smallprint when they first applied for shares, or a tickbox in some registrar's form that *defaults* to giving the Chairman discretion if the shareholder just ignores the voting form itself?

I was trying to generalise, but this is in the context of a company where most shares were acquired by subscribing to new fundraising offers (hence, agreeing terms in the smallprint of a prospectus), and whose shareholders are overwhelmingly individuals rather than any professionally managed investment vehicle.

I guess many of those individuals may have had financial advisors. Do FAs vote? Under what kind of guidelines?

If you look at a typical "Form of Direction" there is a Box A, in which you mark your voting wishes and give the Chairman your proxy to vote that way.

Then there is Box B where you appoint a proxy to vote at his discretion.

If you have a look at BP.'s notice of meeting for the 2016 AGM, on page 16/24 it explains the options. See http://www.bp.com/content/dam/bp/pdf/in ... g-2016.pdf

In the second paragraph:

You can instruct your proxy how to vote. Where no specific instruction is
given, your proxy may vote at his or her discretion or refrain from voting,
as he or she sees fit.

TJH