Abstentions Sink Applied Materials Holder Proposal on Written Consent

   By Colin Kellaher

Applied Materials Corp. (AMAT) said a shareholder proposal that would give investors the right to take action by written consent without a meeting didn't pass at the company's annual meeting despite garnering a majority of the votes cast.

The Santa Clara, Calif., maker of semiconductor equipment said about 336.9 million shares were voted in favor of the proposal, with roughly 334.4 million voted against.

However, another 5.3 million shares were cast as abstentions, which have the same effect as "against" votes under Delaware law.

Activist shareholder Kenneth Steiner submitted the proposal, which he said would allow shareholders to raise important matters outside the normal annual meeting cycle while avoiding the cost of a special meeting.

Applied Materials' board recommended holders reject the proposal, arguing it could allow important decisions to be approved without advance notice to all shareholders and "without the benefit of enabling all shareholders to consider arguments for and against, express their views, and vote."

A similar proposal by Mr. Steiner won the approval of Allstate Corp. (ALL) shareholders in 2011 despite the board's recommendation that shareholders vote against it.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

March 12, 2019 08:35 ET (12:35 GMT)

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