In finance and investments, the term householding refers to the grouping of individuals at the same address into a single unit. This means companies are able to send materials such as annual reports or proxy statements to multiple recipients using just one copy of the necessary documents. This helps reduce costs to the company and unnecessary waste or resources. This process has been officially verified by the SEC.
Householding Example
The following text is taken from the Form PRER14A Filing with the SEC made by Tallgrass Energy (TGE) on March 9, 2020 in relation to the proposed takeover by Prairie Private Acquiror LP,
Householding of Shareholder Meeting Materials
The SEC has adopted rules that permit companies and intermediaries (such as brokers or banks) to satisfy the delivery requirements for proxy statements with respect to two or more security holders sharing the same address by delivering a single notice or proxy statement addressed to those security holders. This process, which is commonly referred to as “householding,” potentially provides extra convenience for security holders and cost savings for companies. Banks, brokers and other nominees may be participating in the practice of “householding” proxy statements and annual reports. As indicated in the notice provided by these banks, brokers and other nominees to TGE Shareholders, a single proxy statement will be delivered to multiple TGE Shareholders sharing an address unless contrary instructions have been received from an affected TGE Shareholder. Once you have received notice from your bank, broker or other nominee that it will be “householding” communications to your address, “householding” will continue until you are notified otherwise or until you revoke your consent.
The text clearly states the purposes and aims of the practice of householding. However, this procedure is not universally followed. Some companies and investments funds are yet to subscribe to this procedure.
