Exxon Mobil objects to the Securities and Exchange Commission's rule on shareholder proposals. So why is it suing these small investors instead of the SEC?
In February, Exxon Mobil sued the U.S. investment firm Arjuna Capital and Netherlands-based green shareholder firm Follow This to keep a shareholder resolution they sponsored from appearing on the agenda of its May 29 annual meeting. The resolution urged Exxon Mobil to work harder to reduce the greenhouse gas emissions of its products.
So they weren’t even trying to silence them on a public forum. They didn’t want a resolution to “work harder” to appear on the agenda. Then after the defendants agreed to withdraw and not pursue the resolution again, Exxon still sued them to send a message to other shareholders that they must keep their mouths shut and not try to exercise any of their rights as a shareholder. That is pretty chilling behavior, even from Exxon.
So they weren’t even trying to silence them on a public forum. They didn’t want a resolution to “work harder” to appear on the agenda. Then after the defendants agreed to withdraw and not pursue the resolution again, Exxon still sued them to send a message to other shareholders that they must keep their mouths shut and not try to exercise any of their rights as a shareholder. That is pretty chilling behavior, even from Exxon.