When proxies are solicited, firms must provide shareholders with information about major proposed changes in the company's business.

Question

Quizplus · Accepted Answer

Proxies are solicitations of a shareholder's voting rights in a company's annual or special meeting. Firms must provide shareholders with proxy materials, which include information about major proposed changes in the company's business or the election of new directors to the board. Therefore, the statement is true.

When Proxies Are Solicited, Firms Must Provide Shareholders with Information