Source: https://www.law.cornell.edu/cfr/text/17/240.14a-16?quicktabs_7=1
Timestamp: 2016-02-14 19:55:43
Document Index: 395479249

Matched Legal Cases: ['art 240', '§ 240', '§ 240', '§ 240', '§ 240', '§ 240', '§ 230', '§ 240', '§ 240', '§ 230', '§ 240', '§ 240', '§ 240', '§ 240', '§ 240', '§ 240', '§ 230', '§ 240', '§ 240', '§ 240']

17 CFR 240.14a-16 - Internet availability of proxy materials. | US Law | LII / Legal Information Institute
CFR › Title 17 › Chapter II › Part 240 › Section 240.14a-16 17 CFR 240.14a-16 - Internet availability of proxy materials.
§ 240.14a-16
A registrant shall furnish a proxy statement pursuant to § 240.14a-3(a), or an annual report to security holders pursuant to § 240.14a-3(b), to a security holder by sending the security holder a Notice of Internet Availability of Proxy Materials, as described in this section, 40 calendar days or more prior to the security holder meeting date, or if no meeting is to be held, 40 calendar days or more prior to the date the votes, consents or authorizations may be used to effect the corporate action, and complying with all other requirements of this section.
Unless the registrant chooses to follow the full set delivery option set forth in paragraph (n) of this section, it must provide the record holder or respondent bank with all information listed in paragraph (d) of this section in sufficient time for the record holder or respondent bank to prepare, print and send a Notice of Internet Availability of Proxy Materials to beneficial owners at least 40 calendar days before the meeting date.
All materials identified in the Notice of Internet Availability of Proxy Materials must be publicly accessible, free of charge, at the Web site address specified in the notice on or before the time that the notice is sent to the security holder and such materials must remain available on that Web site through the conclusion of the meeting of security holders.
All additional soliciting materials sent to security holders or made public after the Notice of Internet Availability of Proxy Materials has been sent must be made publicly accessible at the specified Web site address no later than the day on which such materials are first sent to security holders or made public.
The Web site address relied upon for compliance under this section may not be the address of the Commission's electronic filing system.
The registrant must provide security holders with a means to execute a proxy as of the time the Notice of Internet Availability of Proxy Materials is first sent to security holders.
The materials must be presented on the Web site in a format, or formats, convenient for both reading online and printing on paper.
The Notice of Internet Availability of Proxy Materials must contain the following:
A prominent legend in bold-face type that states “Important Notice Regarding the Availability of Proxy Materials for the Shareholder Meeting To Be Held on [insert meeting date]”;
An indication that the communication is not a form for voting and presents only an overview of the more complete proxy materials, which contain important information and are available on the Internet or by mail, and encouraging a security holder to access and review the proxy materials before voting;
The Internet Web site address where the proxy materials are available;
Instructions regarding how a security holder may request a paper or e-mail copy of the proxy materials at no charge, including the date by which they should make the request to facilitate timely delivery, and an indication that they will not otherwise receive a paper or e-mail copy;
The date, time, and location of the meeting, or if corporate action is to be taken by written consent, the earliest date on which the corporate action may be effected;
A clear and impartial identification of each separate matter intended to be acted on and the soliciting person's recommendations, if any, regarding those matters, but no supporting statements;
A toll-free telephone number, an e-mail address, and an Internet Web site where the security holder can request a copy of the proxy statement, annual report to security holders, and form of proxy, relating to all of the registrant's future security holder meetings and for the particular meeting to which the proxy materials being furnished relate;
Any control/identification numbers that the security holder needs to access his or her form of proxy;
Instructions on how to access the form of proxy, provided that such instructions do not enable a security holder to execute a proxy without having access to the proxy statement and, if required by § 240.14a-3(b), the annual report to security holders; and
The Notice of Internet Availability of Proxy Materials may not be incorporated into, or combined with, another document, except that it may be incorporated into, or combined with, a notice of security holder meeting required under state law, unless state law prohibits such incorporation or combination.
The Notice of Internet Availability of Proxy Materials may contain only the information required by paragraph (d) of this section and any additional information required to be included in a notice of security holders meeting under state law; provided that:
The registrant must revise the information on the Notice of Internet Availability of Proxy Materials, including any title to the document, to reflect the fact that:
The registrant is conducting a consent solicitation rather than a proxy
The registrant is not soliciting proxy or consent authority, but is furnishing an information statement pursuant to § 240.14c-2; and
The registrant may include a statement on the Notice to educate security holders that no personal information other than the identification or control number is necessary to execute a proxy.
Except as provided in paragraph (h) of this section, the Notice of Internet Availability of Proxy Materials must be sent separately from other types of security holder communications and may not accompany any other document or materials, including the form of proxy.
Notwithstanding paragraph (f)(1) of this section, the registrant may accompany the Notice of Internet Availability of Proxy Materials with:
A pre-addressed, postage-paid reply card for requesting a copy of the proxy materials;
A copy of any notice of security holder meeting required under state law if that notice is not combined with the Notice of Internet Availability of Proxy Materials;
In the case of an investment company registered under the Investment Company Act of 1940, the company's prospectus, a summary prospectus that satisfies the requirements of § 230.498(b) of this chapter, or a report that is required to be transmitted to stockholders by section 30(e) of the Investment Company Act (15 U.S.C. 80a-29(e)) and the rules thereunder; and
An explanation of the reasons for a registrant's use of the rules detailed in this section and the process of receiving and reviewing the proxy materials and voting as detailed in this section.
Plain English. (1) To enhance the readability of the Notice of Internet Availability of Proxy Materials, the registrant must use plain English principles in the organization, language, and design of the notice.
The registrant must draft the language in the Notice of Internet Availability of Proxy Materials so that, at a minimum, it substantially complies with each of the following plain English writing principles:
In designing the Notice of Internet Availability of Proxy Materials, the registrant may include pictures, logos, or similar design elements so long as the design is not misleading and the required information is clear.
The registrant may send a form of proxy to security holders if:
At least 10 calendar days or more have passed since the date it first sent the Notice of Internet Availability of Proxy Materials to security holders and the form of proxy is accompanied by a copy of the Notice of Internet Availability of Proxy Materials; or
The form of proxy is accompanied or preceded by a copy, via the same medium, of the proxy statement and any annual report to security holders that is required by § 240.14a-3(b).
The registrant must file a form of the Notice of Internet Availability of Proxy Materials with the Commission pursuant to § 240.14a-6(b) no later than the date that the registrant first sends the notice to security holders.
Obligation to provide copies. (1) The registrant must send, at no cost to the record holder or respondent bank and by U.S. first class mail or other reasonably prompt means, a paper copy of the proxy statement, information statement, annual report to security holders, and form of proxy (to the extent each of those documents is applicable) to any record holder or respondent bank requesting such a copy within three business days after receiving a request for a paper copy.
The registrant must send, at no cost to the record holder or respondent bank and via e-mail, an electronic copy of the proxy statement, information statement, annual report to security holders, and form of proxy (to the extent each of those documents is applicable) to any record holder or respondent bank requesting such a copy within three business days after receiving a request for an electronic copy via e-mail.
The registrant must provide copies of the proxy materials for one year after the conclusion of the meeting or corporate action to which the proxy materials relate, provided that, if the registrant receives the request after the conclusion of the meeting or corporate action to which the proxy materials relate, the registrant need not send copies via First Class mail and need not respond to such request within three business days.
The registrant must maintain records of security holder requests to receive materials in paper or via e-mail for future solicitations and must continue to provide copies of the materials to a security holder who has made such a request until the security holder revokes such request.
Security holder information. (1) A registrant or its agent shall maintain the Internet Web site on which it posts its proxy materials in a manner that does not infringe on the anonymity of a person accessing such Web site.
The registrant and its agents shall not use any e-mail address obtained from a security holder solely for the purpose of requesting a copy of proxy materials pursuant to paragraph (j) of this section for any purpose other than to send a copy of those materials to that security holder. The registrant shall not disclose such information to any person other than an employee or agent to the extent necessary to send a copy of the proxy materials pursuant to paragraph (j) of this section.
A person other than the registrant may solicit proxies pursuant to the conditions imposed on registrants by this section, provided that:
A soliciting person other than the registrant is required to provide copies of its proxy materials only to security holders to whom it has sent a Notice of Internet Availability of Proxy Materials; and
A soliciting person other than the registrant must send its Notice of Internet Availability of Proxy Materials by the later of:
40 Calendar days prior to the security holder meeting date or, if no meeting is to be held, 40 calendar days prior to the date the votes, consents, or authorizations may be used to effect the corporate action; or
The date on which it files its definitive proxy statement with the Commission, provided its preliminary proxy statement is filed no later than 10 calendar days after the date that the registrant files its definitive proxy statement.
Content of the soliciting person's Notice of Internet Availability of Proxy Materials. (i) If, at the time a soliciting person other than the registrant sends its Notice of Internet Availability of Proxy Materials, the soliciting person is not aware of all matters on the registrant's agenda for the meeting of security holders, the soliciting person's Notice on Internet Availability of Proxy Materials must provide a clear and impartial identification of each separate matter on the agenda to the extent known by the soliciting person at that time. The soliciting person's notice also must include a clear statement indicating that there may be additional agenda items of which the soliciting person is not aware and that the security holder cannot direct a vote for those items on the soliciting person's proxy card provided at that time.
If a soliciting person other than the registrant sends a form of proxy not containing all matters intended to be acted upon, the Notice of Internet Availability of Proxy Materials must clearly state whether execution of the form of proxy will invalidate a security holder's prior vote on matters not presented on the form of proxy.
This section shall not apply to a proxy
solicitation in connection with a business combination transaction, as defined in § 230.165 of this chapter, as well as transactions for cash consideration requiring disclosure under Item 14 of § 240.14a-101.
Full Set Delivery Option. (1) For purposes of this paragraph (n), the term full set of proxy materials shall include all of the following documents:
A copy of the proxy statement;
A copy of the annual report to security holders if required by § 240.14a-3(b); and
A form of proxy.
Notwithstanding paragraphs (e) and (f)(2) of this section, a registrant or other soliciting person may:
Accompany the Notice of Internet Availability of Proxy Materials with a full set of proxy materials; or
Send a full set of proxy materials without a Notice of Internet Availability of Proxy Materials if all of the information required in a Notice of Internet Availability of Proxy Materials pursuant to paragraphs (d) and (n)(4) of this section is incorporated in the proxy statement and the form of proxy.
A registrant or other soliciting person that sends a full set of proxy materials to a security holder pursuant to this paragraph (n) need not comply with
The timing provisions of paragraphs (a) and (l)(2) of this section; and
The obligation to provide copies pursuant to paragraph (j) of this section.
A registrant or other soliciting person that sends a full set of proxy materials to a security holder pursuant to this paragraph (n) need not include in its Notice of Internet Availability of Proxy Materials, proxy statement, or form of proxy the following disclosures:
Instructions regarding the nature of the communication pursuant to paragraph (d)(2) of this section;
Instructions on how to request a copy of the proxy materials; and
Instructions on how to access the form of proxy pursuant to paragraph (d)(10) of this section.
[72 FR 4168, Jan. 29, 2007, as amended at 72 FR 42238, Aug. 1, 2007; 72 FR 42238, Aug. 1, 2007; 73 FR 17814, Apr. 1, 2008; 75 FR 9081, Feb. 26, 2010]
§ 240.14a-16 Internet availability of proxy
(1) A registrant shall furnish a proxy statement pursuant to § 240.14a-3(a), or an annual report to security holders pursuant to § 240.14a-3(b), to a security holder by sending the security holder a Notice of Internet Availability of Proxy
Materials, as described in this section, 40 calendar days or more prior to the security holder meeting date, or if no meeting is to be held, 40 calendar days or more prior to the date the votes, consents or authorizations may be used to effect the corporate action, and complying with all other requirements of this section.
(2) Unless the registrant chooses to follow the full set delivery option set forth in paragraph (n) of this section, it must provide the record holder or respondent bank with all information listed in paragraph (d) of this section in sufficient time for the record holder or respondent bank to prepare, print and send a Notice of Internet Availability of Proxy
Materials to beneficial owners at least 40 calendar days before the meeting date. (b)
(1) All materials identified in the Notice of Internet Availability of Proxy
Materials must be publicly accessible, free of charge, at the Web site address specified in the notice on or before the time that the notice is sent to the security holder and such materials must remain available on that Web site through the conclusion of the meeting of security holders.
(2) All additional soliciting materials sent to security holders or made public after the Notice of Internet Availability of Proxy
Materials has been sent must be made publicly accessible at the specified Web site address no later than the day on which such materials are first sent to security holders or made public.
(4) The registrant must provide security holders with a means to execute a proxy as of the time the Notice of Internet Availability of Proxy
Materials is first sent to security holders.
(d) The Notice of Internet Availability of Proxy
Materials must contain the following:
(1) A prominent legend in bold-face type that states “Important Notice Regarding the Availability of Proxy
Materials for the Shareholder Meeting To Be Held on [insert meeting date]”;
(2) An indication that the communication is not a form for voting and presents only an overview of the more complete proxy
materials, which contain important information and are available on the Internet or by mail, and encouraging a security holder to access and review the proxy
materials before voting;
(3) The Internet Web site address where the proxy
materials are available;
(4) Instructions regarding how a security holder may request a paper or e-mail copy of the proxy
materials at no charge, including the date by which they should make the request to facilitate timely delivery, and an indication that they will not otherwise receive a paper or e-mail copy;
(6) A clear and impartial identification of each separate matter intended to be acted on and the soliciting person's recommendations, if any, regarding those matters, but no supporting statements; (7) A list of the materials being made available at the specified Web site;
(8) A toll-free telephone number, an e-mail address, and an Internet Web site where the security holder can request a copy of the proxy statement, annual report to security holders, and form of proxy, relating to all of the registrant's future security holder meetings and for the particular meeting to which the proxy
materials being furnished relate;
(1) The Notice of Internet Availability of Proxy
Materials may not be incorporated into, or combined with, another document, except that it may be incorporated into, or combined with, a notice of security holder meeting required under state law, unless state law prohibits such incorporation or combination.
(2) The Notice of Internet Availability of Proxy
Materials may contain only the information required by paragraph (d) of this section and any additional information required to be included in a notice of security holders meeting under state law; provided that:
(i) The registrant must revise the information on the Notice of Internet Availability of Proxy
Materials, including any title to the document, to reflect the fact that:
(A) The registrant is conducting a consent solicitation rather than a proxy
(B) The registrant is not soliciting proxy or consent authority, but is furnishing an information statement pursuant to § 240.14c-2; and
(1) Except as provided in paragraph (h) of this section, the Notice of Internet Availability of Proxy
Materials must be sent separately from other types of security holder communications and may not accompany any other document or materials, including the form of proxy.
(2) Notwithstanding paragraph (f)(1) of this section, the registrant may accompany the Notice of Internet Availability of Proxy
Materials with:
(i) A pre-addressed, postage-paid reply card for requesting a copy of the proxy
(ii) A copy of any notice of security holder meeting required under state law if that notice is not combined with the Notice of Internet Availability of Proxy
Materials; (iii) In the case of an investment company registered under the Investment Company Act of 1940, the company's prospectus, a summary prospectus that satisfies the requirements of § 230.498(b) of this chapter, or a report that is required to be transmitted to stockholders by section 30(e) of the Investment Company Act (15 U.S.C. 80a-29(e)) and the rules thereunder; and
(iv) An explanation of the reasons for a registrant's use of the rules detailed in this section and the process of receiving and reviewing the proxy
materials and voting as detailed in this section.
(1) To enhance the readability of the Notice of Internet Availability of Proxy
Materials, the registrant must use plain English principles in the organization, language, and design of the notice.
(2) The registrant must draft the language in the Notice of Internet Availability of Proxy
Materials so that, at a minimum, it substantially complies with each of the following plain English writing principles:
(3) In designing the Notice of Internet Availability of Proxy
Materials, the registrant may include pictures, logos, or similar design elements so long as the design is not misleading and the required information is clear.
(1) At least 10 calendar days or more have passed since the date it first sent the Notice of Internet Availability of Proxy
Materials to security holders and the form of proxy is accompanied by a copy of the Notice of Internet Availability of Proxy
(2) The form of proxy is accompanied or preceded by a copy, via the same medium, of the proxy statement and any annual report to security holders that is required by § 240.14a-3(b). (i) The registrant must file a form of the Notice of Internet Availability of Proxy
Materials with the Commission pursuant to § 240.14a-6(b) no later than the date that the registrant first sends the notice to security holders.
Obligation to provide copies.
(1) The registrant must send, at no cost to the record holder or respondent bank and by U.S. first class mail or other reasonably prompt means, a paper copy of the proxy statement, information statement, annual report to security holders, and form of proxy (to the extent each of those documents is applicable) to any record holder or respondent bank requesting such a copy within three business days after receiving a request for a paper copy.
(3) The registrant must provide copies of the proxy
materials for one year after the conclusion of the meeting or corporate action to which the proxy
materials relate, provided that, if the registrant receives the request after the conclusion of the meeting or corporate action to which the proxy
materials relate, the registrant need not send copies via First Class mail and need not respond to such request within three business days. (4) The registrant must maintain records of security holder requests to receive materials in paper or via e-mail for future solicitations and must continue to provide copies of the materials to a security holder who has made such a request until the security holder revokes such request.
Security holder information.
(1) A registrant or its agent shall maintain the Internet Web site on which it posts its proxy
materials in a manner that does not infringe on the anonymity of a person accessing such Web site.
(2) The registrant and its agents shall not use any e-mail address obtained from a security holder solely for the purpose of requesting a copy of proxy
materials pursuant to paragraph (j) of this section for any purpose other than to send a copy of those materials to that security holder. The registrant shall not disclose such information to any person other than an employee or agent to the extent necessary to send a copy of the proxy
materials pursuant to paragraph (j) of this section.
(1) A soliciting person other than the registrant is required to provide copies of its proxy
materials only to security holders to whom it has sent a Notice of Internet Availability of Proxy
(2) A soliciting person other than the registrant must send its Notice of Internet Availability of Proxy
Materials by the later of:
Content of the soliciting person's Notice of Internet Availability of Proxy Materials.
(i) If, at the time a soliciting person other than the registrant sends its Notice of Internet Availability of Proxy
Materials, the soliciting person is not aware of all matters on the registrant's agenda for the meeting of security holders, the soliciting person's Notice on Internet Availability of Proxy
Materials must provide a clear and impartial identification of each separate matter on the agenda to the extent known by the soliciting person at that time. The soliciting person's notice also must include a clear statement indicating that there may be additional agenda items of which the soliciting person is not aware and that the security holder cannot direct a vote for those items on the soliciting person's proxy card provided at that time.
(ii) If a soliciting person other than the registrant sends a form of proxy not containing all matters intended to be acted upon, the Notice of Internet Availability of Proxy
Materials must clearly state whether execution of the form of proxy will invalidate a security holder's prior vote on matters not presented on the form of proxy.
(m) This section shall not apply to a proxy
Full Set Delivery Option.
(1) For purposes of this paragraph (n), the term full set of proxy
materials shall include all of the following documents:
(ii) A copy of the annual report to security holders if required by § 240.14a-3(b); and
(i) Accompany the Notice of Internet Availability of Proxy
Materials with a full set of proxy
(ii) Send a full set of proxy
materials without a Notice of Internet Availability of Proxy
Materials if all of the information required in a Notice of Internet Availability of Proxy
Materials pursuant to paragraphs (d) and (n)(4) of this section is incorporated in the proxy statement and the form of proxy.
(3) A registrant or other soliciting person that sends a full set of proxy
materials to a security holder pursuant to this paragraph (n) need not comply with
(4) A registrant or other soliciting person that sends a full set of proxy
materials to a security holder pursuant to this paragraph (n) need not include in its Notice of Internet Availability of Proxy
Materials, proxy statement, or form of proxy the following disclosures:
(ii) Instructions on how to request a copy of the proxy