Company: BBY
Filing Date: 2025-05-01
Form Type: DEF 14A
Source: 0001140361-25-016935
Chunk: 95

Company: BEST BUY CO INC
Filing Date: 2025-05-01
Form: DEF 14A
Chunk 95
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 Action by written consent has a number of shortcomings in that regard because it does not require that all shareholders: |

| ○ | receive notice of the written consent proposal, |

| ○ | be given adequate time to review the subject matter of the proposal, |

| ○ | be given the opportunity to consider alternative views on the proposal or |

| ○ | be afforded the opportunity to debate the merits of the proposal at an open meeting. |

Shareholders also have greater ability in a meeting framework to change their minds and their votes prior to action becoming effective. In the context of a shareholder meeting, all communications with respect to proposed actions to be taken at a meeting of shareholders are governed by SEC rules that require fair disclosure to all shareholders. Accordingly, complete and accountable information about the proposed shareholder action is widely distributed beforehand through proxy statement materials, facilitating open and informed discussion prior to and in connection with the meeting. The meeting process also gives the Board time to analyze and provide a recommendation on the proposal and promotes well informed decision-making by shareholders and directors.

| • | Written Consent Rights May Disenfranchise Shareholders and Have Other Potentially Negative Consequences.Unlike a shareholder meeting, for which notice would be provided to all shareholders, the written consent process does not guarantee that all shareholders are informed of the proposed action or can participate in the decision. The proposal does not impose any ownership requirements on the shareholders soliciting written consent and, as a result, could be initiated by a single shareholder holding a very small number of shares. Written consent rights of the type proposed may encourage accumulation of short-term share ownership by a small group of investors (including those who accumulate a short-term voting position through borrowed shares) to advance a special agenda that may be contrary to the long-term best interests of Best Buy and its shareholders. |

Additionally, a written consent process could lead various groups of shareholders to solicit written consents at the same time, potentially on a nearly continuous basis as different shareholder groups select their own special interest causes that may not be in the best long-term interests of all shareholders. These solicitations may be duplicative or conflicting. Addressing these solicitations would impose significant administrative and financial burdens on the Company without necessarily providing any corresponding benefit to shareholders.

| • | The ability to act by written consent is uncommon among public companies and rarely used, and its disadvantages outweigh its potential use.Among public companies, the ability for shareholders to act by written consent is uncommon. According to FactSet, approximately 30% of companies in the S&P 500