Moreover, in the absence of consent, issue will exist over the propriety of using particular addresses, particularly those that are shared. FN8 Given the lack of security on the Internet, issues may ultimately arise over access to information distributed electronically, including information contained in a customized proxy card. Despite the general rule that a consent obtained by the borker can be used by the issuer, this is not the case in the area of distribution to beneficial owners. The rules require distribution of proxy materials by the relevant broker or bank. In this case, therefore, no matter which entity obtains the consent, only the secruities intermediary can actually distribute the materials.
Some companies seem only to episocially update their web page.
Posting the material haphazardly will create an argument that the market did not rely on the page because it never knew when timely information would be posted. As Internet use becomes more widespread, this type of argument will decline in vitality. As the Conference Report indicated, this reflected the current state of the law.