Recently, a Disney shareholder, Erik G. Paul, put forth a resolution to the Walt Disney Company asking for an independent review of the DAS (Disability Access Pass). The DAS pass has come under fire in recent years as changes have excluded many who used to receive it, and in some cases, I would argue that Disney is taking it too far, but these passes are often abused as well. However, it seems a new rule by the SEC now allows Disney to dismiss shareholder resolutions moving forward.
The shareholder requested an independent review of the new DAS policies,
“Shareholders request that Disney commission an independent review, conducted by a qualified third party, of the company’s accessibility and disability inclusion practices. This review should assess legal, financial, and reputational risks; evaluate Disney’s policies against international accessibility standards and competitors; and identify opportunities for leadership improvement. Shareholders further request that the Board provide a public summary and internal briefing on the findings to ensure accountability and transparency.”
According to WDWNT, Disney asked for the proxy resolution to be dismissed from its annual voting meeting due to their claim that “the Proposal is materially false and misleading.”
Disney is arguing that these statements made in the resolution are false or misleading.
“Disney’s brand and financial stability are under strain from underperforming films, rising park costs, consumer boycotts, and waning trust..” I personally think this one is true.
“Disney reported that the Parks and Experiences division experienced “lower volumes” tied to attendance…A significant contributor is the company’s recent overhaul of disability accommodations at its parks. The changes have prompted negative press coverage, social media critique, a pending class-action lawsuit, and reports of customers canceling vacations and passes. Mishandling disability access risks eroding guest loyalty, consumer spending, and ultimately shareholder confidence.” The lawsuit is true, as is the negative coverage and critique, but it is harder to prove a direct link to mass cancellations of trips and passes.
The proposal also mentions red flag words and phrases like “legal claims“, “regulatory scrutiny“, and “brand damage.”
These claims paint Disney in a negative light to shareholders, hence their claim of “false and misleading” information, along with the claim that it interferes with their business practices.
However, it seems none of this matters, as the SEC has changed its rules. This could be a bigger issue moving forward.
On November 17, the SEC’s Division of Corporation Finance changed the rules. They will no longer review company filings to exclude shareholder proposals (except in cases involving state laws). Meaning Disney no longer needs the SEC’s permission to deny resolutions for voting.
Now the question is, how many shareholder resolutions will Disney veto now that it no longer needs permission to do so?
I have a feeling their dismissal won’t end with this one resolution. That is concerning.
What do you think? Comment and let us know!
Source: WDWNT
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