Subject: shareholder rights

Date:    11/20/97 10:27 AM
     
     
> Dear Chairman Leavitt:
> 
> I am writing to make known my serious objection to the SEC's 
> proposed rules (S7-25-97).  These rules, if adopted, would 
> seriously undermine the shareholder process and give companies free 
> license to make dangerous, shortsighted management decisions without 
> review by, or accountability to, their investors.
> 
> Today's shareholder process is a responsible one and a powerful tool of 
> democracy.  Shareholder participation in corporate governance has led to 
> many important changes in corporate behavior.  For example: the
> establishment of clear standards for corporate environmental behavior, 
> divestment in South Africa, and an end to the use of child labor and
> corporate 
> governance, to name a few.  
> 
> The shareholder process allows for dialogue between shareholders and 
> corporate decision-makers and helps find real solutions to urgent social, 
> environmental, labor and human rights issues. The following provisions 
> are especially problematic:
> 
> *  The new rules would block shareholder resolutions that address less 
> than 3% or $10 million of a company's business.  This provision would 
> effectively eliminate many emerging issues or business practices that
> are not easily measured in dollars such as sweatshop labor or pollution. 
> 
> *  The new rules provide an automatic qualification for any resolution 
> sponsored by the owners of 3% of a company's shares of stock.  For most 
> Fortune 500 companies, 3% of the shares means more than $1 billion worth 
> of stock, which means only the biggest investors could wield this kind of 
> clout. This is grossly discriminatory.
> 
> Please protect the rights of American shareholders to address 
> irresponsible 
> corporate behavior through the shareholder resolution process and stop 
> these 
> regulations from going through. 
> 
> Sincerely,
> 
> Colin Stuart
> 423 Terry Ave #21
> Seattle, WA 98104
> 
>