Is Disney Misleading its Shareholders Too?

March 29, 2011

Earlier, I discussed how, in theory, Apple could be committing securities fraud by not disclosing information about Steve Jobs’ health.  And, how the SEC has prohibited misstatements in proxies.  Well, turns out Apple isn’t the only company that this affects.

Jobs is also a board member of the Walt Disney Corporation, and, as Bloomberg reports, was reelected over Institutional Shareholders Services’ recommendation to vote against his election.  Jobs had to be elected via shareholder vote.  Like in the Apple post, shareholders weren’t given full information about Jobs’ health, making their vote uninformed.

Although I don’t think there is damages for a good case, Disney’s proxy omitted material information.

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