Shareholders of public companies may request that company management include resolutions (also known as "shareholder proposals") to be voted on at the company’s next annual meeting. These proposals may address company policies and procedures, corporate governance, executive compensation, or other issues such as environmental stewardship or corporate social responsibility. In addition, the resolutions may be nonbinding ("precatory") or binding. To be eligible to propose a resolution, a shareholder must meet certain SEC ownership requirements. SEC rules prevent several types of proposals, and allow companies to exclude proposals from appearing in the company’s proxy statement on certain grounds, such as that the proposal relates to a company's ordinary business operations or the company has already substantially implemented it. Shareholder resolutions are often a preferred method of shareholder activism to push for changes in corporate governance and executive compensation practices. Overall, only a small number of proposals garner significant support and even fewer actually receive majority approval. Yet, the impact of the resolutions can be significant by creating pressures on the board and management to deviate from the highly customized business strategies or face additional potential shareholder rebellion and adverse media attention. To help companies minimize the number of these types of shareholder resolutions, the Center advocates companies make it a priority to engage with their largest investors.