Md. Code Regs. 31.04.07.08

Current through Register Vol. 51, No. 22, November 1, 2024

Section 31.04.07.08 - Mailing Communications for Security Holders

A. If the management of the issuer has made or intends to make any solicitation subject to this chapter, the issuer shall perform the acts in §§B-D of this regulation requested in writing with respect to the same subject matter or meeting by any security holder who is, or security holders who are, entitled to vote at least 1 percent of the votes entitled to be voted on the matter and who shall defray the reasonable expenses to be incurred by the issuer in the performance of the act or acts requested.

B. The issuer shall mail or otherwise furnish to a security holder, as promptly as practicable after the receipt of the request:

(1) A statement of the approximate number of record owners and, to the extent known to the issuer, the approximate number of beneficial owners of any class of securities, any of whom have been or are to be solicited on behalf of the management, or any group of whom the security holder shall designate; and

(2) An estimate of the cost of mailing a specified proxy statement, form of proxy, or other communication to the owners.

C. Issuer Responsibilities.

(1) Copies of any proxy statement, form of proxy, or other communication furnished by the security holder shall be mailed by the issuer to any of the security owners specified in §B(1) of this regulation as the security holder designates.

(2) The material furnished by the security holder shall be mailed with reasonable promptness after receipt of the material to be mailed, envelopes or other containers, and postage or payment for postage. The issuer need not, however, mail any material before the first day that solicitation is made on behalf of the issuer.

(3) The issuer is not responsible for the proxy statement, form of proxy, or other communication.

D. Instead of performing the acts specified in §§B-C of this regulation, the issuer may, at its option, furnish promptly to a security holder:

(1) A reasonably current list of the names and addresses of the record owners and, to the extent known to the issuer, the beneficial owners the security holder designates; and

(2) A schedule of the handling and mailing costs if the schedule has been supplied to the issuer.

Md. Code Regs. 31.04.07.08

Regulations .08 adopted effective February 12, 2007 (34:3 Md. R. 303)