14A:5-31 Establishment of procedures, conditions relative to certain proxy solicitation materials.
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/nj/title-14a/chapter-5/14a-5-31A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
1. A corporation may establish, in its bylaws, procedures or conditions under which materials with respect to shareholder-nominated individuals will be included in a corporation's proxy solicitation materials, including the form of proxy, for an upcoming election of directors. Those procedures or conditions may include, but shall not be limited to, the following:
(1)A condition requiring a minimum level of beneficial ownership of shares of the corporation's voting stock by the nominating shareholder or a minimum duration of ownership of those shares;
(2)Conditions limiting nominations of directors who have been previously nominated to the board;
(3)A provision limiting the number of shareholder-nominated directors for each shareholder meeting at which directors are to be elected;
(4)Procedures requiring the nominating shareholder to submit specified information concerning the shareholder and the shareholder's nominees, including information concerning ownership by those persons of shares of the corporation's capital stock;
(5)A provision limiting nominations to shareholders, or any affiliate of those shareholders, who have not, and whose nominee has not, within a specified time period, publicly proposed to acquire shares constituting a specified percentage of the voting power of the corporation's outstanding voting stock; and
(6)A provision requiring that the nominating shareholder undertake to indemnify the corporation in respect of any loss arising as a result of any false or misleading information or statement submitted by the nominating shareholder in connection with a nomination.
L.2017, c.299, s.1.