According to todayâ€™s W$J (see here), only a single director (the Chairman and CEO) attended Home Depot Inc.â€™s recent annual shareholdersâ€™ meeting, and he refused to answer questions as to why the other directors were not there. A commentor to this post about Halliburtonâ€™s annual shareholdersâ€™ meeting asserted that â€œ[t]he purpose of the meeting is to allow shareholders the opportunity – just once a year – . . . to confront management if they so choose.â€? This may be the position of some shareholders, but it is not supported by state corporate law. As the Home Depot meeting demonstrates, there is no requirement that directors or other members of management even attend (although skipping the meeting is probably unwise from an investor relations standpoint). For more on the purpose of annual shareholdersâ€™ meetings, youâ€™ll have to wait for my upcoming paper â€œThe Case Against Mandatory Annual Director Elections and Shareholdersâ€™ Meetingsâ€? which I will post on SSRN in the near future.
Directors skip Home Depot’s annual shareholders’ meeting.
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May 31, 2006
[…] Bill Sjostrom broke the news of the disgraceful absence of directors at the recent Home Depot shareholdersâ€™ meeting here.Â I found the story so scandalous, however, that I did a bit more digging, just to see what sort of rationale for missing the meeting was proffered by the truant HD directors.Â All I found was the following little nugget of PR wizardry from Home Depot: […]Loading...