There are shareholder votes that matter and there are those that do not. ExxonMobil may be confusing the two. A small Massachusetts-based investment fund, Arjuna Capital, has in recent years exercised its legal rights to bring non-binding shareholder votes, urging the oil major to reduce production in the name of combating climate change.
Shareholders have handily rejected them. But this year Arjuna tried again. Federal securities laws also allow companies to go to the Securities and Exchange Commission to exclude such “precatory” or advisory votes. Often such appeals are successful.
Instead, Exxon went to federal court in Texas to invalidate the proposal, a seemingly heavy-handed approach even after Arjuna withdrew its efforts and pledged never to try again.