Shareholders Divided On Proxy Access

Over the past week, a shareholder proposal requesting that the board of directors take steps to adopt a "proxy access" by-law was considered at the annual meetings of both The Toronto-Dominion Bank (TD Bank) and Royal Bank of Canada (RBC). The proposal was approved by 52.2% of the votes cast at the TD Bank meeting last week, but was defeated at the RBC annual meeting yesterday, where it received support from 46.83% of the votes cast.

The level of support for the proposal at both of these meetings suggests a degree of interest among shareholders that will ensure that proxy access remains on the board agenda in Canada. 

What is proxy access?

"Proxy access" refers to the ability of qualified shareholders to have director nominees included in the company's proxy circular and form of proxy, subject to certain restrictions.