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Subject: proxies

Proxy voting and delegated voting are procedures for the delegation to another member of a voting body of that member’s power to vote in his absence. Proxy appointments can be used to form a voting bloc that can exercise greater influence in deliberations or negotiations. A person so designated is called a “proxy” and the person designating him is called a “principal.” (Wikipedia Feb 2010)

US Equities

Who is holding America’s stock proxies?

Over 55% of corporate stock that belongs to US Households and Nonprofit Organizations is held indirectly through intermediaries who have the power to vote these shares.

The major holders of these voting powers are pension plans and mutual funds.

This means that it is not shareholder-owners that control most US public corporations, but hired intermediaries, each of which have conflicts of interest.

1995-2004

Intermediaries control corporate America

Decline in Direct Equity Ownership

The percentage of equities belonging to households and nonprofit corporations increased from 42.8% to 55.4% between December 1995 and December 2004.

Over 55% of the equity shares of US corporations which belong, in the final analysis, to US households and nonprofit organizations, are held indirectly through intermediaries, such as life insurance companies, private pension funds, government retirement funds, and mutual funds.

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2010-08-25 16:03