Cleveland-based KeyCorp's board advised shareholders to vote against a shareholder proposal that seeks to reduce the ownership threshold to call a special shareholder meeting.
The proposal, put forward by John Chevedden on behalf of Kenneth Steiner, asks the board to give holders of a total of 10% of the company's outstanding stock the power to call a special meeting. The company currently allows shareholders holding 25% of all shares outstanding to call special meetings. The shareholder argued that greater access to special meetings is of increased importance at KeyCorp since shareholders permanently lack the right to act by written consent.
In recommending a vote against the proposal, the board said the current threshold is "reasonable and meaningful." It noted that reducing the requirement to 10% could cause KeyCorp to spend time and resources on a special meeting even if up to 90% of shareholders do not want such a special meeting.
Shareholders will vote on the proposal during the company's annual meeting on May 21.