Baker Hughes 2004 Annual Report Download - page 18

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VOTING฀SECURITIES
The฀securities฀of฀the฀Company฀entitled฀to฀be฀voted฀
at฀the฀Annual฀Meeting฀consist฀of฀shares฀of฀its฀Common฀
Stock,฀par฀value฀$1฀per฀share฀(“Common฀Stock”),฀of฀which฀
338,185,465฀shares฀were฀issued฀and฀outstanding฀at฀the฀close฀
of฀business฀on฀February฀25,฀2005.฀Only฀stockholders฀of฀record฀
at฀the฀close฀of฀business฀on฀that฀date฀will฀be฀entitled฀to฀vote฀
at฀the฀meeting.฀Each฀share฀of฀Common฀Stock฀entitles฀the฀
holder฀thereof฀to฀one฀vote฀on฀each฀matter฀to฀be฀considered฀
at฀the฀meeting.
Assuming฀a฀quorum฀is฀present฀at฀the฀Annual฀Meeting,฀
either฀in฀person฀or฀represented฀by฀proxy,฀with฀respect฀to฀the฀
election฀of฀directors,฀the฀four฀nominees฀receiving฀the฀greatest฀
number฀of฀votes฀cast฀by฀the฀holders฀of฀the฀Common฀Stock฀
entitled฀to฀vote฀on฀the฀matter฀will฀be฀elected฀as฀directors,฀the฀
affirmative฀vote฀of฀the฀holders฀of฀a฀majority฀of฀the฀shares฀of฀
Common฀Stock฀present฀in฀person฀or฀represented฀by฀proxy฀at฀
the฀Annual฀Meeting฀and฀entitled฀to฀vote฀on฀the฀matter฀is฀
required฀for฀the฀approval฀of฀the฀ratification฀of฀Deloitte฀&฀฀
Touche฀LLP฀as฀the฀Company’s฀Independent฀Auditor฀for฀fiscal฀
year฀2005฀and฀Stockholder฀Proposal฀No.฀1.฀The฀affirmative฀vote฀
of฀the฀holders฀of฀75%฀of฀the฀total฀voting฀power฀of฀all฀shares฀of฀
Common฀Stock฀entitled฀to฀vote฀on฀the฀matter฀is฀required฀for฀
the฀approval฀of฀the฀Amendment฀of฀the฀Company’s฀Restated฀
Certificate฀of฀Incorporation฀to฀declassify฀the฀Board฀of฀Directors฀
and฀provide฀for฀the฀annual฀election฀of฀all฀directors.฀There฀will฀
be฀no฀cumulative฀voting฀in฀the฀election฀of฀directors.฀Under฀฀
Delaware฀law,฀abstentions฀are฀treated฀as฀present฀and฀entitled฀
to฀vote฀and฀thus,฀will฀be฀counted฀in฀determining฀whether฀a฀
quorum฀is฀present฀and฀will฀have฀the฀effect฀of฀a฀vote฀against฀
a฀matter,฀except฀for฀the฀election฀of฀directors฀in฀which฀case฀an฀
abstention฀will฀have฀no฀effect.฀Shares฀held฀by฀brokers฀or฀nomi-
nees฀for฀which฀instructions฀have฀not฀been฀received฀from฀the฀
beneficial฀owners฀or฀persons฀entitled฀to฀vote฀and฀for฀which฀
the฀broker฀or฀nominee฀does฀not฀have฀discretionary฀power฀to฀
vote฀on฀a฀particular฀matter฀(called฀“broker฀non-votes”),฀will฀be฀
considered฀present฀for฀quorum฀purposes฀but฀not฀considered฀
entitled฀to฀vote฀on฀that฀matter.฀Accordingly,฀broker฀non-votes฀
will฀not฀have฀any฀impact฀on฀the฀vote฀on฀a฀matter,฀except฀the฀
proposed฀Amendment฀of฀the฀Company’s฀Restated฀Certificate฀
of฀Incorporation,฀for฀which฀a฀broker฀non-vote฀will฀count฀as฀a฀
vote฀against฀the฀proposed฀Amendment.
Under฀the฀rules฀of฀the฀New฀York฀Stock฀Exchange฀(“NYSE”)฀
in฀effect฀at฀the฀time฀this฀Proxy฀Statement฀was฀printed,฀if฀you฀
hold฀your฀shares฀through฀a฀broker,฀your฀broker฀is฀permitted฀
to฀vote฀your฀shares฀on฀“routine”฀matters,฀which฀includes฀the฀
election฀of฀directors฀and฀the฀ratification฀of฀the฀Independent฀
Auditor,฀even฀if฀the฀broker฀does฀not฀receive฀instructions฀from฀
you.฀Your฀shares฀will฀only฀be฀voted฀with฀respect฀to฀the฀
Amendment฀to฀the฀Restated฀Certificate฀of฀Incorporation฀to฀
declassify฀the฀Board฀of฀Directors฀and฀provide฀for฀the฀annual฀
election฀of฀all฀directors฀and฀Stockholder฀Proposal฀No.฀1฀if฀you฀
have฀provided฀specific฀voting฀instructions฀to฀your฀broker.
The฀following฀table฀sets฀forth฀information฀about฀the฀฀
holders฀of฀the฀Common฀Stock฀known฀to฀the฀Company฀on฀฀
February฀25,฀2005฀to฀own฀beneficially฀5%฀or฀more฀of฀the฀
Common฀Stock,฀based฀on฀filings฀by฀the฀holders฀with฀the฀Secu-
rities฀and฀Exchange฀Commission฀(“SEC”).฀For฀the฀purposes฀
of฀this฀Proxy฀Statement,฀beneficial฀ownership฀of฀securities฀is฀
defined฀in฀accordance฀with฀the฀rules฀of฀the฀SEC฀to฀mean฀gen-
erally฀the฀power฀to฀vote฀or฀dispose฀of฀securities฀regardless฀of฀
any฀economic฀interest฀therein.
Name฀and฀Address฀ Shares฀ Percent
1.฀ FMR฀Corp.฀ 32,441,688฀ 9.7%฀
฀ 82฀Devonshire฀Street฀
฀ Boston,฀Massachusetts฀02109
2.฀ Barclays฀Global฀Investors,฀NA฀ ฀30,302,372฀ ฀9.0%฀
฀ Walker฀House,฀Mary฀Street฀฀
฀ P.฀O.฀Box฀908฀GT฀
฀ George฀Town,฀Grand฀Cayman,฀฀
฀ ฀ Cayman฀Islands
3.฀ Capital฀Research฀and฀฀
฀ Management฀Company฀ ฀26,570,500฀ ฀7.9%฀
฀ 333฀South฀Hope฀Street฀
฀ Los฀Angeles,฀California฀90071
4.฀ Dodge฀&฀Cox฀ ฀19,710,975฀ ฀5.9%฀
฀ 555฀California฀Street,฀40th฀Floor฀
฀ San฀Francisco,฀California฀94104
2฀฀฀฀Baker฀Hughes฀Incorporated