Netflix Inc’s shareholders having a 3 percent stake will now be allowed to nominate board members as the company, on Wednesday, amended its bylaws following a last year approval by the shareholders who voted in favor of the proposal to exercise such process.
Rights to nominate up to two board members or representation of up to 20 percent in the company’s board will be allowed to a shareholder or a group of up to 20 stakeholders having an ownership of at least 3 percent of the company’s outstanding shares for a time period of at least three years, said the video streaming company on Wednesday.
From time to time, Netflix’s board remained reviewing the corporate governance of the company and at this time that review led the board to determine that adopting the way of providing proxy access to shareholders at board level will be a step appropriate for the company, Netflix said in an emailed statement.
Netflix’s board, in its annual meeting in June last year, had approved a non-binding proposal of adopting the bylaw which allows proxy access. The proposal by shareholders to provide the investors with an access to nominations process of directors was previously opposed not only by the Netflix but also by the others stakeholders including California Public Employees’ Retirement System (CalPERS), but that proposal eventually stood approved.
Endorsement of allowing proxy access to investors by Netflix will eventually allow investors a much of their representation in the board that will give them a purposeful voice at that platform and that also indicates that Netflix is no more an outlier holding out on its long-term shareholders, New York City Comptroller Scott Stringer said.
CalPERS, as of Dec 31 are the holder of about 689,000 Netflix’s share and for the current bylaws it said that it did not have comment on specifications at the company.