NOBO / OBO
Pronunciation: NOH-boh / OH-boh
Also written as: NOBO / OBO — Non-Objecting Beneficial Owner / Objecting Beneficial Owner
Abbreviations for Non-Objecting Beneficial Owner (NOBO) and Objecting Beneficial Owner (OBO), designating whether a beneficial owner has consented to or refused the disclosure of their identity to the issuer.
Full Definition
Under SEC rules, beneficial owners of securities held in street name may instruct their broker whether to permit disclosure of their name and address to the issuer. A Non-Objecting Beneficial Owner (NOBO) consents to disclosure, allowing the issuer or its transfer agent to communicate directly with them. An Objecting Beneficial Owner (OBO) withholds consent, requiring the issuer to route communications through the intermediary. Transfer agents and proxy agents must maintain separate mailing lists for NOBOs and OBOs and apply different distribution procedures for each. Editors should always define both acronyms on first use and present them as 'NOBO' and 'OBO' in all capitals.
Usage
Usage note: Both acronyms must be defined on first use. The distinction governs direct-mail procedures and is a common compliance issue in proxy distributions. Do not use 'NOBO' and 'OBO' without defining them; some style guides require spelling out the full form in headings.
In Context
- "The proxy agent will mail proxy materials directly to NOBOs, while OBOs will receive materials through their respective brokers or banks." — Proxy distribution plan
- "Issuers may purchase NOBO lists from DTC to facilitate direct shareholder communication campaigns." — Investor relations strategy document