Proposal Seeks Equal Voting Governance Structure

NEW YORK, Nov. 20, 2023 /PRNewswire/ — Neuberger Berman a personal, unbiased, employee-owned funding supervisor, in the present day introduced that main proxy advisory companies Institutional Shareholder Services (“ISS”) and Glass Lewis have each really useful that shareholders of Lions Gate Entertainment Corp. (“Lions Gate” or the “Company”) vote on the Company’s Annual Meeting of Shareholders “FOR” Proposal #6 – Shareholder Proposal Seeking Elimination of Dual-Class Share Structure.

ISS famous in its report that:

“Approval of this non-binding proposal would encourage the board to take the necessary steps to adopt a simplified capital structure whereby all shares have an equal, one vote per share. Providing shareholders with voting rights that are proportionate to their economic interests promotes accountability to shareholders and is a standard practice of good corporate governance. As such, support for this proposal is warranted.”

In its report, Glass Lewis shared:

“Glass Lewis believes dual class voting structures are typically not in the best interests of common shareholders. The dual class structure here is no exception. In this case, the voting power of one class is significantly different from that of the common shareholders, giving a small group of shareholders a significant amount of control over the affairs of the Company. We believe all shareholders should have a say in decisions that will affect them.”

At the Annual Meeting of Shareholders of Lions Gate Entertainment Corp. to be held on November 28, 2023, Neuberger Berman urges shareholders vote FOR: Proposal #6 – Shareholder Proposal Seeking Elimination of Dual-Class Share Structure.

The Resolution:

RESOLVED, that shareholders of Lions Gate Entertainment Corp. (“Lions Gate” or the “Company”) hereby request that the Board of Directors take all affordable and essential steps (excluding these steps that have to be taken by shareholders) to undertake a plan of association or different recapitalization plan that may get rid of the dual-class share construction of the Company and any subsidiary or firm that it intends to separate into a brand new public firm, and to make sure that every excellent share of widespread inventory has one vote. 

Neuberger Berman urges votes “FOR” Proposal #6.

Benjamin Nahum, Managing Director and Senior Portfolio Manager of Neuberger Berman, said,

“We welcome this recommendation from ISS and Glass Lewis. ‘One share, one vote’ is a foundational principle of corporate governance, and we have long believed that eliminating the dual-class share structure at Lions Gate would benefit shareholders by allowing the owners of the business to have a proportional say in the composition of the Board and other critical matters. This recommendation from the leading proxy advisory firms underscores the importance of equal voting rights for all shareholders.”

Mr. Nahum continued: “We have known as upon the Lions Gate Board of Directors to take motion to remediate this governance deficiency however have been met with unexplained reticence. It is now time for shareholders to ship a transparent message to the Board: with the Company’s proposed separation of its Starz and Studio companies on the horizon, the Board ought to act now to repair this suboptimal construction. We strongly consider that aligning the voting rights of shareholders with their financial pursuits at each Starz and Studio will enhance alignment and accountability and improve the prospects for long-term worth creation. We encourage our fellow shareholders to vote FOR Proposal 6 on the Annual Meeting to help the removing of the dual-class share construction

IMPORTANT NOTICE: Neuberger Berman is NOT asking for shareholder proxies. It is not going to settle for proxy playing cards, and any proxy playing cards obtained will likely be returned.

About Neuberger Berman

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