International Brotherhood of Teamsters v. Fleming Companies
Supreme Court of Oklahoma
975 P.2d 907 (1999)
The International Brotherhood of Teamsters General Fund (Teamsters) (plaintiff), a Fleming Companies (Fleming) (defendant) shareholder, proposed a bylaw amendment for the annual shareholders meeting requiring any shareholder rights plan to be approved by a shareholder majority vote, in response to Fleming's own board- implemented rights plan. Fleming's board refused to include the proposal in the proxy statement, arguing it wasn't a proper subject for shareholder action under Oklahoma law. The Teamsters sued in federal district court and won; Fleming appealed to the Tenth Circuit, which certified the underlying Oklahoma law question to the Oklahoma Supreme Court.
Whether Oklahoma law permits shareholders to propose bylaws restricting the board of directors' authority to implement shareholder rights plans.