What is the main governance change Flex Ltd. is implementing?

Flex Ltd. is de-classifying its Board of Directors. This means that instead of directors being elected for staggered terms, all directors will stand for election at each subsequent annual general meeting of the Company, starting in 2019.

Why is Flex Ltd. de-classifying its Board?

The company stated that this decision follows a review of corporate governance practices and trends. De-classification is a common trend aimed at increasing director accountability to shareholders and aligning with evolving governance standards.

When will this change take effect and how will it be implemented?

The annual election of the full Board will commence at the Company's Annual General Meeting (AGM) in 2019. To facilitate this, Flex will hold an Extraordinary General Meeting (EGM) before the 2019 AGM to obtain shareholder approval for the necessary amendments to its Constitution.

What should investors look out for regarding this change?

Investors should pay close attention to the proxy statement Flex Ltd. will file in connection with its 2018 Annual General Meeting. This document will contain important information about the proposed changes and voting procedures. Shareholders should also monitor materials related to the upcoming EGM for approval of the constitutional amendments.

FLEX 8-K SEC Disclosure

Summary

Flex Ltd. (FLEX) announced on July 2, 2018, a significant governance change: the de-classification of its Board of Directors. This strategic move will transition the Board to annual elections for all directors, a process that will commence at the Company's 2019 Annual General Meeting (AGM). To implement this change, an Extraordinary General Meeting (EGM) will be convened prior to the 2019 AGM to seek shareholder approval for amendments to the Company's Constitution. This de-classification aims to align Flex with evolving corporate governance practices and trends, allowing all directors to face shareholder election annually, moving away from the previous staggered retirement by rotation system. Investors should note that the company will be filing a proxy statement for its 2018 AGM, which will contain crucial information regarding voting decisions and details about director participants in the solicitation process. Shareholders are encouraged to review these documents when available.

Key Highlights

1Flex Ltd. is de-classifying its Board of Directors, transitioning to annual elections for all directors.
2The full Board will stand for election annually starting at the 2019 Annual General Meeting (AGM).
3An Extraordinary General Meeting (EGM) will be held prior to the 2019 AGM to secure shareholder approval for constitutional amendments.
4This change aligns Flex with modern corporate governance trends and enhances director accountability.
5The company will file a proxy statement for the 2018 AGM, containing important voting information.
6Shareholders can access SEC filings, including proxy statements, free of charge via the SEC website or Flex's investor relations portal.

FLEX LTD. 8-K Report, Corporate Update (Jul 2, 2018)

Summary

Key Highlights

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