MS Facing Shareholder Net Neutrality Vote

Microsoft is attempting to quash a shareholder movement to have it explain its net neutrality position, asking the Securities and Exchange Commission if it could legally remove the proposal from its proxy vote sheets without facing any kind of penalty. The company is arguing that the issue is part of its day to day business and can be excluded under securities laws.

The motion was brought forth by The Free Enterprise Action Fund. The fund claims that net neutrality is needless new government regulation, and said Microsoft owes its shareholders an explanation. The group says the company's focus should be on innovation rather than regulation.

The issue of net neutrality has become a hot-button issue in the halls of Congress, pitting telecommunications companies against Internet companies such as Microsoft, Yahoo and Google. Google has even gone as far as threatening antitrust action against telecommunications companies who abuse their position.

The argument has also fallen along partisan lines. Most Democrats and Internet companies say not including the rules could create a "two-tier Internet," while a majority of Republicans have sided with the telecommunications industry saying the laws are unnecessary regulation.

Tom Borelli, a portfolio manager with the fund, said his group has been fairly successful in the past in mobilizing shareholders to have companies disclose information, although it should be noted the measures have never passed. The closest the group got was a 24 percent vote on an issue with financial company J.P. Morgan.

Microsoft has not announced when it plans to hold its yearly shareholder meeting.