Which of the following statements about shareholder proposals is true?

Question

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Shareholder proposals can be submitted by any shareholder who has held at least $2,000 worth of stock for at least one year. While a majority vote in favor of a shareholder proposal is not legally binding, it can put pressure on management to take action. However, some shareholder proposals may be binding if they are related to certain governance or social issues. Option A is incorrect because the minimum ownership percentage required to submit a shareholder proposal is based on the value of the stock owned, not the number of shares. Option B is incorrect because a shareholder proposal is a formal proposal by a shareholder for consideration at the annual meeting, not an attempt to oust the current board of directors. Shareholder proposals can be submitted by shareholders who own as little as $2,000 or 1% of a company's shares. While a passed shareholder proposal is not legally binding, it can put pressure on management to take the proposal seriously and possibly implement the suggested changes. Option A and B are not true statements.

Which of the Following Statements About Shareholder Proposals Is True