Coca-Cola Amends Bylaws to Allow Proxy Access

Coca-Cola Co. said Thursday that it has amended its bylaws to allow for so-called proxy access, a recently-popular mechanism that allows investors to more easily nominate directors to company boards.

Coke said it would allow shareholders to put forth nominees to the company's board, provided the candidates' backers have owned at least 3% of Coke's shares for at least three years. The change is effective immediately, according to a regulatory filing.

At Coke's annual meeting in April, the proposal almost secured a majority with 40.6% of votes cast in favor. Coke directors had recommended shareholders vote against the proposal, saying more deliberation was needed about the best way to increase proxy access.

Coke now joins companies including General Electric Co. and Citigroup Inc. that have moved to allow so-called proxy access recently.

A few years ago, a federal court shot down an effort by the SEC to impose proxy access on U.S. firms, leaving shareholders to push the issue company by company. The court-scuttled SEC rule would have allowed an investor or group of investors owning at least 3% of a company's stock for at least three years to win the right to nominate.

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September 03, 2015 10:05 ET (14:05 GMT)

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