Warren Buffett’s Company Faces Lawsuit for Rejecting Proposals Last Year

A shareholder proposal at Berkshire Hathaway’s annual meeting has turned into a legal battle as Peter Flaherty, a presenter with the National Legal and Policy Center, filed a lawsuit over the treatment he received last year. Flaherty was cut off during his presentation, arrested for trespassing, and later had the charges dropped. He decided to sue to stand up for shareholder rights.

The issue stemmed from Flaherty questioning the character of Bill Gates, a close friend of Warren Buffett and former Berkshire board member, due to his association with Jeffrey Epstein. Flaherty proposed that someone else should take Buffett’s chairman title while leaving him as CEO to protect Berkshire’s reputation.

Despite the lawsuit and Flaherty’s persistence, all six proposals at this year’s meeting were rejected by the board, with Buffett controlling a significant portion of the vote. Flaherty’s proposal only received 6,150 votes in favor.

Other rejected proposals included calls for reports on climate change risks, diversity and inclusion efforts, and railroad safety. Berkshire argued against the need for additional oversight, citing existing safety measures in place at BNSF.

Flaherty was allowed to present a proposal on the risks of doing business in China this year, but it was also rejected. He argued that Berkshire’s current disclosures about its Chinese subsidiaries are inadequate.

The meeting highlighted the ongoing tension between shareholders and the company’s leadership, with Flaherty’s lawsuit underscoring the importance of shareholder rights and transparency in corporate governance.