A group of nuns and other faith-based investors gained shareholder voting rights on Sturm Ruger & co., one of the country requires far the largest weapon-makers to create a report on the risks of the business.
Ruger CEO, Christopher Killoy, said at the company’s annual meeting on Wednesday that the company will comply with, and report preparation. “The shareholders have spoken,” he said.
But, he added, the winning proposal “does not force us to change our business”, and “can’t change, what is Ruger and what we stand for.”
It was the first big test this year for the faith-based groups of shareholders, who were acting at the urging of the nation the weapon of the industry, after the recent extreme examples of armed violence.
These groups of shareholders. large banks and securities companies for their support, an effort that has paid off in this instance BlackRock, the world’s largest asset manager, and Sturm Ruger, the largest shareholder because of its huge index Fund business, has a proposal of its 2.8 million shares in favor of the shareholder, a source told CNBC.
Vanguard is the second-largest shareholder, although the vote is unknown. A spokesman was not immediately available.
In particular, the proposal, supported by the Catholic health initiatives and the Northwest Coalition for Responsible Investment, is asking gun makers such as Sturm, Ruger in the preparation of a report on the financial and reputational risks associated with its business activities. The partners are planning to introduce a similar proposal on the proxy of the American Outdoor brands, another gun-maker, which normally holds its meetings in the autumn.
Two large shareholder vote Advisory firm, Institutional Shareholder Services and Glass Lewis, threw their support behind the proposal, while the storm had a Ruger Board, one of which is discouraged.
Since the February shooting at a Florida high school that killed left 17 people, it has to stop a wave of activism, the more weapons of violence, with a range of constituents, from high school students who survived the shooting to major banks, retailers and investment firms.
“A new dynamic has proposal over the last few months,” said Colleen Scanlon, chief advocacy officer of the Catholic health initiatives, who was to introduce present at the meeting, the. “It is significant that a majority of the shareholders are asked to consider their company, gun safety.”
BlackRock said in a note to clients in March, it would reach to try to gun Creator, to to you to talk about your business, and, she added, it could be your position as a major shareholder to vote in Board of Directors and in favor of shareholder proposals.
Sturm Ruger is Killoy, said during the meeting, which was webcast from Prescott, Arizona, that the company, as a policy, not individual shareholders.
The proposal received majority support, but the exact percentage of votes for and against is not immediately known. The shareholders voted in favor of all nominees for Director, a vote on the independent accountants and an Advisory vote on the compensation of the Executive Committee.
In a statement, the Interfaith Center on Corporate Responsibility, said on Wednesday the vote sends a strong message to Sturm Ruger board, business as usual is inadequate, given the current climate, and that new safety standards, respond to the risks posed by the weapons that are necessary for society.”