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Which of the following rights concerning shareholder-sponsored board nominations and shareholder-sponsored resolutions would be advantageous to an investor?

A)
The right to nominate or remove board members in certain circumstances, and the right to propose initiatives for consideration at the annual meeting.
B)
The right to propose initiatives for consideration at the annual meeting, but not the right to nominate or remove board members in certain circumstances.
C)
The right to nominate or remove board members in certain circumstances, but not the right to propose initiatives for consideration at the annual meeting.


Investors need the power to put forth an independent board nominee. In addition, the right to propose initiatives for consideration at the annual meeting is an important method to send a message to management.

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Which of the following policies regarding shareowner rights for equity investors is most likely detrimental to the shareowners’ interests?

A)
The company uses a third-party entity to tabulate shareowner votes.
B)
Shareowners are permitted to vote either by paper ballot or a proxy voting service.
C)
Shareowners can approve changes to the corporate structure only with a supermajority vote.


Provisions that require a supermajority can even make changes strongly supported by shareowners more difficult to enact.

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