Tag: Rule 14-8(i)(2)

What’s happening with the shareholder proposal for mandatory arbitration bylaws?

In 2018, a Harvard law professor submitted (on behalf of a related trust/shareholder) a shareholder proposal to Johnson & Johnson requesting that the board adopt a mandatory arbitration bylaw. After receiving a no-action letter from Corp Fin, J&J excluded the proposal, and the professor then sued J&J.  A decision has just been rendered dismissing the complaint. But that’s not necessarily the end of the shareholder’s proposal to J&J for mandatory arbitration.