At each meeting, the shareholders are invited to vote on a range of resolutions ranging from the compensation of corporate leaders to how companies treat their workers in newly-industrialized countries. Once a mundane ritual in which shareholders routinely supported the positions outlined by corporate boards of directors, today these meetings are increasingly characterized by shareholders injecting their views and values into the discussion of corporate priorities and practices. Shareholder resolutions cause companies to disclose information.
Corporations often reveal key information as they defend their record from shareholder criticism.
Resolutions also help change corporate behavior . Disclosure caused by shareholder pressure can drive corporations to make their policies and practices appear more acceptable. Corporations may also make changes specifically requested in shareholder resolutions. Finally, the process of filing shareholder resolutions generates publicity and educates the public . Information services educate all investors, including large institutional investors, about the issues underlying the resolution.