The proxy for a special meeting of this discount retailer had the following proposal:
- Increase the authorized shares by 50%
Magni voted for the proposal. A 2-for-1 stock split had been declared but insufficient shares were available for the split. A stock split does not impact Magni’s assessment of the company for adherence to best practices. The explanation for the need to increase authorized shares, along with the simple and clear reconciliation of existing shares, justifies the need for the additional shares in a manner useful to investment professionals and retail investors. Further, following the split, the company will have about the same number of shares available to be issued as it currently does, hence there is no risk of increased dilution.