Vote treatment follows the guidelines that the SEC provided in Universal Proxy rules and in subsequent guidance (on Nov 17, 2023). See SEC.gov | Proxy Rules and Schedules 14A/14C :
(a) The voting agendas have a “limit” on the number of FOR votes allowed for nominee proposals.
(b) Paper VIFs/votes – SEC processing guidelines specify how vote processors are to handle 5 scenarios for nominee voting on paper VIFs. Language is included on the VIF to make clear to shareholders how their votes are handled when they return a voting card under the following scenarios:
- i. Standard Vote Returns – Shareholder indicates FOR votes on the full number of director nominees permitted and WITHHOLD votes on all remaining nominees listed. Voting is reported as instructed.
- ii. Undermarked Returns – Voting indications are made for one or more nominees but not all nominees. Voting will be reported as instructed on the marked nominees. A default of Withhold or Against, depending on the options provided on the VIF, will be applied to the unmarked nominees; they will not be marked FOR.
- iii. Signed, Unmarked Returns – Shareholder returns a signed and dated VIF with NO indications on any nominees. The recommendation of the soliciting party, whose VIF is returned, will be applied.
- iv. Overmarked Returns – When a shareholder returns a VIF with voting indications that exceed the number of FOR votes allowed for director nominees, no votes are recorded on any of the director nominees on that VIF. However, votes will be recorded for any other proposals contained on that VIF. The overmarked VIF is scanned, and the image will be returned to the respective custodian bank or broker-dealer for follow up and remediation with their customer account holder. When shareholders then correctly follow instructions for director votes, those indications are reported.
- v. Unsigned VIF – Shareholder sends a VIF that is not signed. The scanned image of the VIF will be returned to the bank or broker to follow up with the customer account holder to indicate a vote.
(c) Digital votes – any votes returned through Proxyvote.com, the ProxyVote app, or ProxyEdge are processed as received. Broadridge’s digital voting platforms provide functionality to prevent mismarks through real-time, in-line notifications.
(d) Each solicitation is assigned a Broadridge profile number to distinguish between multiple voting agendas. This corresponds to a separate and unique control number for each profile.
(e) Broadridge provides a vote status report (i.e., “Contest Status” or ”CS” report), to each soliciting party, twice a day, for the duration of the campaign, that provides the vote status for their own and all other soliciting parties.
(f) Broadridge executes a Client Proxy (official voting) beginning 1-2 days prior to the meeting date (i.e., “Contest Vote” or “CV” report). This is also sent to all parties at the same time.
- i. Vote returns are monitored after official voting begins. Supplemental voting is sent periodically up until the time we are informed by Management’s solicitor that the polls are closed (this is referred to as the “Contest Revised Vote” or “CR” report). Broadridge sends vote reports to all soliciting parties.
(g) The latest dated/executed vote by shareholders is reflected in all vote reporting.