A proxy is:A) A document that gives a designated agent of a shareholder the right to vote on the shareholder's behalf.B) A contractual commitment by an investor to purchase unissued shares.C) An amount of assets defined by law that shareholders must invest and leave invested in a corporation.D) The right of ordinary shareholders to protect their proportionate interests in a corporation by having the first opportunity to purchase additional ordinary shares issued by the corporation.E) An arbitrary amount assigned to no-par shares by the corporation's board of directors.

Question

A proxy is:A)  A document that gives a designated agent of a shareholder the right to vote on the shareholder's behalf.B)  A contractual commitment by an investor to purchase unissued shares.C)  An amount of assets defined by law that shareholders must invest and leave invested in a corporation.D)  The right of ordinary shareholders to protect their proportionate interests in a corporation by having the first opportunity to purchase additional ordinary shares issued by the corporation.E)  An arbitrary amount assigned to no-par shares by the corporation's board of directors.

Heather Aiello · Accepted Answer

Final Answer : A, Explanation :  A proxy is a document that gives a designated agent of a shareholder the right to vote on the shareholder's behalf. The agent, or proxy, is authorized to exercise the voting rights that are associated with the shares held by the shareholder. This is a common practice in corporate governance, where shareholders may not be able to attend meetings in person, but still want to have a say in the decisions that affect the company.

Definitions

Learning Objectives

Learning Objectives

Related questions