IP Democracy: Shareholder Wants Microsoft Vote on Net Neutrality

Reuters’ Jeremy Pelofsky has this gem about a cranky Microsoft investor who is pushing the software giant to hold a shareholder vote forcing the company to explain why it endorses net neutrality. (While Microsoft has joined coalitions that advocate net neutrality regulations, it doesn’t stand out as a big proponent).

The Free Enterprise Action Fund is trying to push a proxy vote that would require Microsoft to prepare a report examining “the business and economic rationale, regulatory impacts, legal liabilities and any effects on product development and customers” of net neutrality regulations.

“We feel they should be worried about innovation and competition rather than perhaps running to the government for regulation,” said Tom Borelli, a portfolio manager at the fund, which has about $5.5 million in assets and more than 4,000 Microsoft shares.

Microsoft, not surprisingly, doesn’t want to do that. It has asked the SEC for permission to ignore this request because the company’s position on network neutrality falls into the realm of “ordinary business” and is therefore not subject to a shareholder vote.

Posted by Cynthia Brumfield on July 26, 2006 1:26 PM to IP Democracy