Adjourning, or continuing, a shareholder meeting

Extending the voting period past the meeting date, usually so the company can continue to solicit proxies to pass a management proposal or kill a shareholder initiative. A recent Delaware Chancery Court opinion (State of Wisconsin Investment Board v. Peerless Systems) put companies on notice that they will have to meet a tougher standard of review if they adjourn a meeting in order to interfere with the results of a shareholder vote.