“Anonymous” stated, “But anyway, since his name will not be on the proxy, the only people who might vote for him are those shareholders who attend the annual meeting – probably representing less than 1% of the shares.” Here’s the rub.
People might well vote for Steve without attending the meeting, and certainly can. A shareholder does not have to fill out the proxy and return it to the bank. We can give our proxy to someone who is attending the meeting with instructions as to how we want our shares voted. That person may then cast our votes for Steve.
Secondly, 1% is approximately 32-33,000 shares. I am aware of several shareholders who represent nearly 1%, and in some cases more that 1%, by themselves. These shares may held in their names and the names of family members, or legal entities over which they have voting control; like a trust or partnership. Many of these people will attend this meeting, so exceeding 1% by some margin, but I have no idea how many shares will be represented in person.
By the way, if you have shares in a partnership, trust, fund or investment group you may want to find out if someone else already has the power to vote your shares. The managers may just send the proxy, representing your shares, back to the bank to vote. They should be contacted if that is not your wish.
How many shares would be needed to carry the vote?
It appears that most of the bank stock is held by a lot of shareholders and there are only a few entities holding significant amounts. The board members hold around 200,000 shares of the nearly 3.4 million shares outstanding. I’m told Dimensional Fund Advisors, Inc. holds around 125,000 shares. It doesn’t appear that more than half a million shares are held by the largest shareholders. If that is the case, it leaves a lot of opportunity for the rest of us. How many votes would we need?