Chapter 19Retirement System Stock Proxy Voting

Section § 7450

Explanation

This law requires that any local government body in California that owns common stock must ask their fiduciary (the person or entity managing the stock) to send them proxies—essentially the right to vote on behalf of the stock—in corporate elections. This rule applies to all types of local government units, including counties, cities, districts, and various departments or agencies related to them.

Every local agency in this state owning common stock and whose stock is by contract managed by a fiduciary shall request such fiduciary to forward any proxies for shares owned by the agency which are to be voted in a corporate election to the governing body of such local agency.
“Local agency,” for purposes of this section, includes every county, city, city and county, district, and authority, and each department, division, bureau, board, commission, agency, or instrumentality of any of the foregoing.
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(Added by Stats. 1975, Ch. 1088.)

Section § 7451

Explanation

This California law requires that any local government organization that owns common stock must vote on all proxies returned to a corporation. However, they can choose not to vote on a specific proposal if they inform the corporation in writing that they wish to abstain.

The term 'local agency' includes various governmental entities such as counties, cities, districts, and their departments and retirement systems.

Notwithstanding any other provision of the law, every local agency in this state owning common stock shall, when returning proxies to a corporation, vote each proxy that is returned to the corporation. Nothing in this section shall prohibit a local agency in this state owning common stock from abstaining on a corporate or shareholder proposal and notifying the corporation in writing of the local agency’s desire to abstain on a corporate or shareholder proposal.
As used in section “local agency” includes every county, city, city and county, district, and authority, and each department, division, bureau, board, commission, agency, instrumentality or pension or retirement system of any of the foregoing.
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(Added by Stats. 1977, Ch. 611.)