April 3, 2019 / 8:37 PM / 7 months ago

Netflix amends bylaws allowing shareholders to nominate board members

FILE PHOTO: The Netflix logo is seen on their office in Hollywood, Los Angeles, California, U.S. July 16, 2018. REUTERS/Lucy Nicholson/File Photo

(Reuters) - Netflix Inc on Wednesday amended its bylaws to allow its shareholders with a 3 percent stake to nominate board members, a year after shareholders voted in favor of such a proposal, known as proxy access.

The video streaming company said on Wednesday that a shareholder, or a group of up to 20 stakeholders, owning at least 3 percent of its outstanding shares for at least three years may nominate up to two directors, or can have a representation of up to 20 percent of the company’s board.

“The board periodically reviews our corporate governance, and determined that adopting proxy access is appropriate at this time,” Netflix said in an emailed statement.

A non-binding proposal to adopt the proxy access bylaw was approved at its annual meeting in June.

Netflix had previously opposed the proposal by shareholders, including California Public Employees’ Retirement System (CalPERS), of providing investor access to director nominations.

“By enacting proxy access, Netflix is finally giving investors a meaningful voice in board elections and they are no longer an outlier holding out on their long-term shareowners,” New York City Comptroller Scott Stringer said.

CalPERS, which owned about 689,000 shares of the company as of Dec. 31, said it did not have comment on specifics at Netflix.

Reporting by Ankit Ajmera in Bengaluru; Editing by Anil D'Silva

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