I've already laid out the reasons why Reverend Ken Hutcherson's latest scheme is likely to fail in previous post - and they are legion.
Hutch has said he will stop Microsoft "supporting anti-Judeo Christian values" by amassing One Hundred Million (100,000,000) shares of MSFT stock and then putting forward a Shareholder Proposal in time for he and his followers to vote on it at Microsoft's next Annual Stockholders meeting in November 2008.
But like most things Hutch does, I don't think he thought it through or did the math correctly.
Researching the Microsoft Stockholder meeting schedule, it turns out that in order to vote the shares, they must be acquired far enough in advance.
On the AGN Financial site, Hutcherson has set out a deadline for getting the 100 million shares he wants for mid-March 2008. A full nine months prior to the likely date of the ballot in mid-November 2008.
My reading of the proxy materials over the last several years shows that in order to vote the shares, you need to be a shareholder of record by the end of the first full week in September – only about 5 weeks before the ballot. This falls right inside the guidance contained in the Microsoft By-laws:
1.7 Record Date and Transfer Books
For the purpose of determining shareholders who are entitled to notice of or to vote at any meeting of shareholders or any adjournment thereof, or entitled to receive payment of any dividend, or in order to make a determination of shareholders for any other proper purpose, the Board of Directors may fix in advance a record date for any such determination of shareholders, such date in any case to be not more than seventy (70) days and, in case of a meeting of shareholders, not less than ten (10) days prior to the date on which the particular action, requiring such determination of shareholders, is to be taken.
Is there another rule that imposes a nine month window? I can’t find it in the SEC regulations I’ve looked at. If there is no such rule, the question is “Why is Hutcherson driving people to donate by mid-March?”
Does he finally intend to pay the $30,000 in back rent he owes the school where he rents space for his church?
Or does he just have a boat or SUV payment due?
Assuming that this isn't just a scam to get more money sooner, that leaves Hutcherson and his followers just over two months to meet the 100 million MSFT share goal.
Even I find it hard to believe that even Hutcherson could be this poor in his planning.