Shareholder proposals on the company proxy statement:
A) must be stated in the form of a request or recommendation according to SEC rules.
B) may only be implemented by the company if they receive support from at least a simple majority of the shareholders.
C) are, in about half of the cases, withdrawn before a vote because the company decides to implement the proposal.
D) may address only corporate-governance issues, such as cumulative voting or executive compensation, but may not address the shareholder's political agenda, such as saving the environment.

Question

Quizplus · Accepted Answer

According to SEC rules, shareholder proposals must be stated in the form of a request or recommendation, but they may address a wide range of issues including environmental and social concerns. Shareholder proposals may only be implemented if they receive support from a majority of shareholders who vote on the proposal. However, it is common for companies to negotiate with shareholders and agree to implement the proposal without a vote, leading to many proposals being withdrawn before a vote takes place. Therefore, option C is the best choice as it accurately reflects the current situation with shareholder proposals.

Shareholder Proposals on the Company Proxy Statement