Bob Has Decided to Solicit Proxies from Shareholders of Sunset

Bob has decided to solicit proxies from shareholders of Sunset Corporation.Bob owns two shares of Sunset,which have a share price of $48.Bob is soliciting the proxies in order to elect a friend of his to the board of directors.Bob's friend is reasonably intelligent,but he has no business experience.In his proxy solicitation,Bob accurately describes his friend and his background and,indicates that the proxy is being sought in order to elect this friend to the board of directors.Bob does not disclose why he thinks his friend should be on the board of directors,nor does Bob disclose what effect he thinks his friend's membership on the board will have on company earnings.Two weeks before starting to solicit proxies,Bob filed copies of his proxy materials with the Securities and Exchange Commission.Bob:

A) has not properly prepared the proxy statement, because he did not disclose the potential effect on company earnings of his friend's membership on the board.
B) cannot solicit proxies because, he does not own a sufficient amount of stock in the corporation.
C) can solicit the proxies, but only if he has obtained approval from the board of directors.
D) will be able to recover the costs of this proxy contest, even if his friend is not elected.
E) has complied with all applicable proxy requirements.