Magni’s Position on Proforma Proxy Proposals | Appointment of Auditors 

Magni votes company proxies on behalf of clients and is guided in its votes by applying corporate governance best practices as described in Magni’s Sustainable Value Creation principles.

When Magni is voting a proxy, it means that one or more Magni clients have the associated security in an account. These accounts use a Magni Corporate Governance strategy so that the resulting portfolio contains the best governed companies, according to Magni research. Hence, the companies are already well run, and Magni is inclined to vote for proforma proposals. Each Magni vote on a company proxy is documented in a post published on Magni’s proxy blog.

No company is perfect, and all companies have opportunities for improvement. If the improvement areas overlap with a proposal, then Magni may vote against the board recommendation.

Company proxies for securities listed on U.S. exchanges have proforma proposals regarding:

  • Election of directors,
  • Ratification of the appointment of auditors, and
  • “Say on pay” advisory vote.

This document identifies the conditions where Magni will vote consistent with the board recommendation on the appointment of auditors. Unless there is a material controversy related to the company financials, Magni defers to the board on the selection of auditors. If Magni votes against the ratification of the auditor, the decision along with the explanation is documented in the blog post.