Proxy Voting Drops Dramatically Online
February 8, 2010, Securities Industry News

With the increase of online technology, many thought retail investors would turn to electronic proxy materials and online voting which would not only save postage and printing fees for companies but allow for easier access for investors. However, despite the efforts of the Securities and Exchange Commission to encourage online proxy voting, this has not been the case.

"It ended up being a tradeoff," says Colin Diamond, a partner at the law firm of White & Case in New York. "While some issuers did save plenty of money, some investors decided they didn't want to receive information electronically. Yet others may have been willing to vote online but were confused about how to do so."