Share Action FAQs

What is Share Action designed to do?
We designed Share Action to give shareholders a decision-making tool that is modern, accurate, efficient, and simple. Share Action allows non-binding votes to occur among verified shareholders. Additionally, successful initiatives can then be submitted as actual shareholder proposals.

How does Share Action work?
When a Sharegate member initiates a Share Action, the member is presented with the template to enter a proposal, define the voting options, and then present the topic to the rest of the shareholders present on Sharegate. All Sharegate owners of the concerned stock will be notified via their dashboards and email (if desired), and will then have the opportunity to vote. Share Ask then calculates the voting results and presents them to the Sharegate community.

What value does Share Action provide?
Shareholders now have a simple means to reach fellow shareholders and vote on issues with minimal expense, except perhaps a little time and the cost of maintaining a Sharegate membership. Share Action allows an initiating member to gauge the interest and thus chances of success before expending more time and effort submitting a shareholder proposal to the company for inclusion on the proxy.

Are Share Actions binding to the corporation?
Share Actions are not binding to the concerned company. Share Action is designed to be a decision-making and consensus determination tool, not a replacement for existing processes. We feel that this does not reduce the effectiveness. Just as election participants take election polls seriously, shareholders and management teams will take Share Action events seriously. The amount of influence and support for any initiative is displayed transparently. If a majority of shareholders are present on Sharegate and have voted on a topic, the result is a strong indicator of what will occur if the proposal is added to the proxy.

Who can initiate Share Actions?
Only verified shareholders of the company or company representatives may submit Share Actions concerning a particular company.

Can the involved management teams control or influence Share Actions?
No, there is no method for an involved corporation to control a Share Action. They are, however, able to post comments on the Share Action and participate in related discussions on Sharegate.

What if a corporation does not maintain a Sharegate membership? May they still participate and view these events?
No. A Sharegate Corporate membership is a requirement for viewing and participating in discussion regarding any Share Action. Non-member corporations are not notified or otherwise involved in Share Actions unless they maintain a Corporate membership. 

What if a management team is against a proposal submitted through Share Action?
Management teams communicating through Sharegate corporate accounts are highly encouraged to correct errors and present their own position regarding any Share Action. In cases where libel is suspected to have occurred, the company may report the event to Sharegate and we will take appropriate action.

Must a member satisfy the same ownership requirements required to submit an SEC-compliant shareholder proposal to the company in order to submit a Share Action?
No. The minimum requirement to submit a Share Action is current ownership of the concerned company's stock.

How long does voting occur for a Share Action?
Share Action events, once initiated, remain open for voting for one year day. After 1 year, no further voting is allowed and the results are displayed and archived. Initiating members, who are determining the viability of an actual shareholder proposal, may use the outcome of any Share Action to gauge the worthiness or likely success of any shareholder proposal. Successful Share Actions could the be submitted to the company as actual shareholder proposals.

After a Share Action is determined to have a good chance of success, how do I submit a shareholder proposal?
The process of submitting shareholder proposals is an established process clearly delineated by existing regulations which can be located on the Securities and Exchange Commission website and other sources.  

Does Sharegate track shareholder proposal outcomes?
No. Sharegate records and displays the proposal but does not track outcomes. Sharegate cannot require the concerned corporation to respond to or through Sharegate. 

Do other shareholders see the proposal a member submits using the shareholder proposal tool?
As part of the Share Action process, all owners, along with those who are "Watching" the stock via their "Watch List", will be notified of the proposal via their dashboards or email (if desired). The notification will also be posted to the concerned corporation's profile page and the Share Action Forum.