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ESOP Pass-Through Voting and the New DOL Guidance on Proxy Voting
National Center for Employee Ownership [NCEO]
Dec. 16, 2020 "The issue of whether trustees can and should override participant directions on offers to buy shares in a proposed acquisition of an ESOP company has been one of the most ambiguous areas of ESOP law and practice.... In practice, it is exceedingly rare for employees to vote no on a good offer, and there is no litigation in closely held companies where this has been an issue. That does not make the issue moot, however." |
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