Hirsh Ament, Partner RespectedParticipated in a video interview during Neret’s REITWISE: 2024 Law, Accounting & Finance Conference held March 19-21 in Hollywood, Florida.
Reflecting on the 2023 proxy season, Ament highlighted the proliferation of ESG resolutions, which saw a slight increase in environmental and social matters but a decrease in governance issues. These proposals generally lacked significant support, he said, with only about a 20% approval rate and few passing.
Discussing corporate governance, Ament addressed the introduction of the universal proxy and its impact on proxy contests. “Although the first year did not see a significant increase in competitions or success rates, there was a small increase in nominees failing to meet advance notice clause requirements,” Ament said, noting that this occurred because companies Amend your bylaws to include universal proxies and enhance governance provisions.
Ament also highlighted an important update to Maryland corporate law, specifically the Eastland Foods case, which clarified director duties and provided stability for boards. This clarification, coupled with Maryland’s stable legal environment, contrasted with ongoing developments in Delaware, should provide reassurance to REITs operating in Maryland, Ament said.
