Securities and Exchange Commission (SEC) Rule 14a-8, has provided shareholders with the right to include proposals in a company's proxy materials. The shareholder proposal rule provides shareholders with a vehicle for expressing their views to management and other shareholders on matters that are important to them.

To be eligible to submit a proposal you must have continuously held at least $2,000 in market value for at least one year by the date you submit the proposal and you must continue to hold those securities through the date of the meeting.

The issues which can be addressed through shareholder proposals are limited and corporations have the right to petition the SEC to omit shareholder proposals from the company’s proxy.

Funds that are interested in filing shareholder proposals at companies they own should contact the Department of Corporate Affairs for further information.

Examples of Shareholder Proposals Filed by LIUNA Funds in 2007-2008 are below:

• Succession Planning
• Mortgage Operations Disclosure
• Pay for Superior Performance
• Majority Voting for Directors
• Setting policies for relationships with credit rating agencies
• Independent Board Chair