Each year, companies are mandated by the Securities and Exchange Commission to send shareholders a proxy statement and a proxy ballot. The proxy statement describes shareholder resolutions and the material facts on which shareholders will vote. The issues to be voted upon may include questions about the company's auditors, board of directors, option plan, as well as social issues. Management always gives its recommendation on shareholder votes. The proxy ballet gives written authorization for the management to cast your votes at the shareholder's annual meeting.
Votes are always for or against.
Initiating dialogue with company management to top Speaking with company management about issues of concern is common technique among institutional shareholders. Talking with management avoids the confrontational approach of shareholder resolutions and may find a friendly ear. While large shareholders such as pension and mutual funds may have a greater ability to get the attention of management that should not stop individual investors from voicing their concerns. Addressing a letter to the president or the investor's relation department as a shareholder will most likely get a response. For individual investors there are four issues that are most important.