Who are Non-Objecting Beneficial Owners (NOBO)?

• A. Individuals who object to certain securities being sold
• B. Beneficial owners who allow their information to be released to the issuer
• C. Individuals who hold securities for speculative purposes
• D. Investors that are not affiliated with the company

Answer: (B)

Non-Objecting Beneficial Owners (NOBO) refer to beneficial owners of securities who permit their information to be disclosed to the issuer of those securities. This designation is important in the context of corporate governance and shareholder communications, as it allows companies to identify and communicate directly with their beneficial shareholders.

In many securities markets, ownership can be complex due to the presence of intermediaries like brokers and custodians. NOBOs are identified as those who have not opted out of having their information shared, which means the issuer can reach out to them regarding important matters, such as shareholder meetings or voting. This contrasts with Objecting Beneficial Owners (OBOs), who prefer to keep their information confidential and restrict the issuer from contacting them directly.

Understanding the role of NOBOs is crucial for issuers and companies as they strategize their communication and engagement with shareholders, ensuring that they can effectively gather feedback and encourage shareholder participation in corporate decisions.