By: Cydney Posner

Nasdaq has proposed new amendments to its rule regarding annual shareholders' meetings. The proposed amendments require issuers with listed common stock, voting preferred or their equivalents to hold annual meetings within one year after the fiscal year end. The previous requirement to provided notice of the meeting to Nasdaq has been deleted. At the meeting, the shareholders must be afforded the opportunity to discuss company affairs with management and to elect directors, if required by the company's governing documents. Nasdaq permits the use of webcasts, provided that they are permitted under applicable state law and that shareholders have the opportunity to ask questions of management. This requirement is not applicable to other types of securities (identified in the proposed rule) that do not elect directors or otherwise participate directly as equity owners.

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