Southwest Airlines amended its bylaws on May 19, 2025, to require shareholders to own at least 3% of the company's outstanding stock to initiate derivative proceedings. This change was disclosed in an SEC filing.
The amendment sets a higher threshold for shareholders seeking to bring legal action on behalf of the company. This type of corporate governance change can impact the dynamics of shareholder activism.
The new bylaw aims to streamline legal processes and potentially limit the number of derivative lawsuits the company may face, focusing on actions brought by more substantial shareholders.
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