What is proxy access and how does it affect Colgate-Palmolive shareholders?

Proxy access allows eligible shareholders, under specific ownership thresholds and holding periods, to nominate director candidates and have those nominations included in the company's official proxy statement. For Colgate-Palmolive shareholders, this means a new avenue to directly influence board composition if they meet the By-law requirements.

What are the ownership and holding requirements for shareholders to use proxy access?

Shareholders must own at least 3% of the company's outstanding common stock continuously for at least three years to be eligible to nominate directors through proxy access.

How many directors can be nominated under the new proxy access provisions?

Eligible shareholders can nominate director candidates constituting up to the greater of two individuals or 20% of the Board of Directors.

Besides proxy access, what other changes were made to the By-laws?

The By-laws were also amended to provide clarifications and refinements to the advance notice by-law, increase the upper limit for the Board of Directors size from 12 to 15 members, and implement certain other technical and administrative changes.

CL 8-K: Corporate Changes

Summary

Colgate-Palmolive Company (CL) filed an 8-K on January 15, 2016, primarily to disclose amendments to its By-laws approved by the Board of Directors on January 14, 2016. The most significant change is the implementation of proxy access, allowing eligible shareholders to nominate director candidates for inclusion in the company's proxy materials. This move could potentially increase shareholder influence on corporate governance. The amendments also include clarifications to existing advance notice provisions, an increase in the maximum size of the Board of Directors, and other minor administrative updates. Investors should note that these changes directly impact how shareholders can engage with the company regarding director nominations.

Key Highlights

1Colgate-Palmolive adopted proxy access provisions in its By-laws.
2Shareholders owning at least 3% of stock continuously for three years can nominate directors.
3Nomination process allows for up to the greater of two individuals or 20% of the Board.
4By-laws were amended to clarify advance notice provisions.
5The maximum size of the Board of Directors was increased from 12 to 15 members.
6These changes are effective as of January 14, 2016.

COLGATE PALMOLIVE CO 8-K Report, Bylaw Amendment (Jan 15, 2016)

Summary

Key Highlights

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