Lucy owns 10 shares of stock in Quamba,Inc.Lucy wishes to place a proposal in a company's proxy statement to be voted on at the shareholders' meeting.Pursuant to the SEC rules,before Lucy is allowed to place her proposal on the proxy statement,she must
A)have owned continuously for one year at least 1 percent of the company and $2,000 or more of the stock.
B)have owned continuously for one year at least 1 percent of the company or $2,000 or more of the stock.
C)have the permission of the board of directors.
D)have been a stockholder for at least two years.

Question

Quizplus · Accepted Answer

According to SEC rules, a shareholder must have owned continuously for at least one year either 1% of the company's stock or $2,000 worth of stock to be eligible to place a proposal on the proxy statement. Option B is the correct one as it accurately states the SEC requirement. Option A is incorrect because the 1 percent ownership and the $2,000 worth of stock are separate and not joint requirements. Option C and D are incorrect as permission of the board of directors and two years of stockholding are not SEC requirements for proposing a vote on the proxy statement.

Lucy Owns 10 Shares of Stock in Quamba,Inc