In 2000, the Securities and Exchange Commission (SEC) enacted a rule that allows two or more shareholders residing at the same residence to receive a single copy of proxy and information statements, annual reports and prospectuses, if they consent to do so. This is known as “Householding” and is allowed if:
- The company, or issuer, agrees to have its documents householded.
- The shareholders consent to or do not object to having their documents householded.
- The shareholders have the same last name and exact address.
- Householding is consistent with the practices of the shareholder’s intermediary.
It is important to note that each shareholder receives his/her own voting form. It is only the proxy materials (the background information) that are consolidated. Each shareholder is still entitled to cast his/her own vote.
Householding helps issuers reduce the costs associated with printing and mailing these materials to its shareholders and helps reduce waste.
SEC Rule 14a-3