Summary
Southern Company (SO) filed an 8-K on June 1, 2010, detailing the outcomes of its Annual Meeting of Stockholders held on May 26, 2010. The key takeaway for investors is that all director nominees were elected with a significant majority of "for" votes, indicating strong shareholder confidence in the current board. Additionally, shareholders ratified the appointment of Deloitte & Touche LLP as the independent auditor for 2010. The meeting also saw the approval of several important corporate governance changes. These include the adoption of a majority vote standard and the elimination of cumulative voting in uncontested director elections, as well as the elimination of cumulative voting in all director elections. Furthermore, shareholders approved an increase in the number of authorized shares of common stock. Conversely, two shareholder proposals concerning environmental reports (climate change and coal combustion byproducts) did not receive majority support and were therefore not approved.
Key Highlights
- 1All 11 director nominees were successfully elected by a substantial majority of votes cast, demonstrating shareholder confidence in the current board.
- 2Shareholders ratified the appointment of Deloitte & Touche LLP as the Company's independent registered public accounting firm for 2010.
- 3The Company adopted a majority vote standard for director elections in uncontested situations.
- 4Cumulative voting in uncontested director elections was eliminated.
- 5Cumulative voting in all director elections was eliminated via an amendment to the Certificate of Incorporation.
- 6Shareholders approved an increase in the number of authorized shares of common stock.
- 7Two shareholder proposals requesting environmental reports (climate change and coal combustion byproducts) were not approved by shareholders.