There has been a trend, for several years, of management increasingly saying shareholders have no say in how the company is run. Boards are already stacked with people who will rubber stamp whatever management wants. Eliminating accountability to shareholders makes management, who are actually employees of the shareholders, law unto themselves.
I was checking up on the status J&J’s scummy tactic to duck it’s talc liability, and found this:
J&J, plowing ahead with talc bankruptcy strategy, faces investor push to pull product worldwide
Activist investor platform Tulipshare wants to leverage a vote to stop J&J from selling its talc-based powder around the world. J&J currently faces nearly 40,000 lawsuits related to talc safety concerns,
In a letter to the SEC, lawyers for J&J asked officials to not require the company to bring the issue to a vote at its annual meeting. The proposal would weigh on J&J’s litigation strategy and “intrude upon management’s exercise of its day-to-day business judgment with respect to pending litigation in the ordinary course of business operations,” the J&J lawyers wrote.
https://www.fiercepharma.com/pharma/j-j-plowing-ahead-bankru…
I have seen other managements petition the SEC to allow them to deny shareholder items to be put to a vote. I see management pushing back on proposals to require disclosure of lobbying activities, saying who they bribe and how large the bribes are, and why they are paid, are none of the shareholder’s business. Now, they try to bury a proposal to stop selling a product, leaving the company open to more liability around the world.
Isn’t that shiny?
Steve