Dollar Tree moves to strengthen stockholder rights
Dollar Tree Inc. has announced a series of new corporate governance guidelines that include an updated policy on director overboarding.
As part of the new guidelines, which the company said are designed to strengthen stockholder rights, the advance notice time period for shareholder nominations of directors and proposals of business has been moved closer to the company’s annual stockholders meetings. Starting after the 2022 meeting, the notice must be “no earlier than 120 days and no later than 90 days before the anniversary of the prior year's annual meeting."
In addition, under the new policy director candidates should “generally” not serve on more than four other corporate boards — or if the candidate serves as the CEO of a public company, the candidate should “generally” not serve on more than two other public company boards.
Dollar Tree also plans to include a proposal in its proxy statement for its 2022 annual meeting that would permit stockholders that own 15% or more of the company’s common stock to call a special meeting.
“The board believes that implementing these corporate governance changes will not only empower stockholders to engage with the Company but will allow them to do so more efficiently and conveniently,” stated Edward J. Kelly, III, lead independent director and chair of the nominating & governance committee. “These policies further represent Dollar Tree’s commitment to preserving stockholders’ rights to elect the directors they wish to represent the company.”
The company plans to file an SEC proxy statement as part of its 2022 annual shareholders meeting.
Dollar Tree operated 16,077 stores across 48 states and five Canadian provinces as of January 29, 2022. Stores operate under the brands of Dollar Tree, Family Dollar, and Dollar Tree Canada.
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