EGC Corporate Governance Practices (May 2018)

EGC Corporate Governance Practices: A Survey and Related Resources PAGE 10 Removal for Cause Of the 815 companies for which data was available, approximately 65.4% provided that their directors could be removed only for “cause.” Advance Notice Provisions Of the 830 companies for which data was available, approximately 87.3% had “advance notice” bylaw provisions that require shareholders to follow specific procedures and timelines in order to nominate potential board members. Figure 15 : N=830. Present; 726 Absent; 104 Advance Notice Provisions in Bylaws (By Frequency) Present Absent In order to provide for an orderly shareholder meeting, a corporation often designates in advance certain procedures to be followed for shareholders to initiate business and specify matters that are appropriate for consideration at the meeting. The procedures typically specify advance notice of intent to bring business before the annual meeting and the contents of the notice. Any business attempted to be brought for consideration at the annual meeting other than in compliance with the advance notice procedures would not be acted upon.