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I was photographed, walked through a
metal detector and scanned with a hand-held device.
I am surprised they didn't fingerprint me. My
briefcase was searched. When my camera was found, I
was bluntly informed I couldn't take it with me.
Call it a camera Catch-22: I couldn't take it with
me, but they wouldn't hold it for me.
"Sir, you are holding up the line."
Intimidation was in the air as I
retreated in the corridor and left my camera
unattended on the floor. What else could I do? I
then walked past the goons and into the meeting.
This wasn't a top-level security
briefing at the Pentagon. I'm not usually invited to
those. No, it was a shareholders' meeting for one of
Fidelity Investment's mutual funds. Perhaps 20
people attended. The only substantive order of
business was a group of activists pleading with
management to divest from corporations supporting
genocide in Darfur. There was also a
management-sponsored proposal to reduce from 50% to
33% the required fraction of shareholders for a
quorum at shareholder meetings. Fidelity is
struggling to gather sufficient proxies to achieve
quorum at meetings, and this is their solution. Just
30 minutes were allotted for the entire meeting, and
with another meeting scheduled immediately
afterward, there wasn't a lot of flexibility. The
management proposal passed with about 99% of the
vote. The Darfur activists got a little over 20%.
I was attending as a field agent of the Investor
Suffrage Movement,
witnessing the sorry state of shareholder democracy.
I owned shares in the Fidelity mutual fund, and my
goal had been to appoint a colleague—also a field
agent—as my proxy, so
she could attend the meeting on my behalf. The prior
week, I had called Fidelity's toll-free line and
asked the friendly agent how I could do this. The
call lasted 45 minutes. Most of that time, I was on
hold while he desperately tried to find someone who
could answer my question. Finally, he got back on
the line and told me I wasn't allowed to appoint my
own proxy. I could either appoint management as my
proxy or attend the shareholder meeting myself. That
is how I ended up in that corridor haggling with
Fidelity security over a camera.
About fifteen minutes of the
shareholder meeting was devoted to formalities and
balloting. There actually were no ballots—just more
proxy assignment cards, which Fidelity had us use as
ballots. We had no choice, so legally even people
who attended the meeting were forced to sign over
their proxies to management. Perhaps two minutes
were devoted to the management proposal. I asked the
only question: "Is there any statutory limit on how
low the quorum requirement can be set?" Fidelity's
general counsel explained that 50% is the minimum
for corporations, but the mutual fund is structured
as a Massachusetts trust, for which there is no
legal minimum. The balance of the meeting was
devoted to the Darfur petition.
A final item on the agenda was for
general fund business, but time ran out. The chair
announced we would skip it. I protested, as I hadn't
yet raised the issue of not being allowed to appoint
my own proxy. With the chair's permission, I briefly
described my experience with the agent on Fidelity's
toll-free line. The general counsel apologized for
the misinformation I had received and promised to
talk to me after the meeting. I made the mistake of
accepting this. After the meeting, he referred me to
an assistant who took my e-mail address. Suspecting
I might never hear from her, I pressed for her name
and number. She hesitated but did surrender them.
She was Margaret Carey, associate general counsel.
Hopefully, she is now busily drafting procedures for
Fidelity shareholders to appoint their own proxies.
More likely, she has forgotten I exist. I will
follow-up with her soon.
Overview of the field agent program

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