Which of the Following Statements Is FALSE

question 13

Multiple Choice

Which of the following statements is FALSE?

• A)Recently,shareholders have started organizing "no" votes.That is,when they are dissatisfied with a board,they simply refuse to vote to approve the slate of nominees for the board.
• B)One early study of proxy contests found that the announcement of a contest increased firm stock price by 8% on average,even if the challenge was eventually unsuccessful and the incumbents won reelection.
• C)Shareholders' only real role in governance is in electing the directors of the company.
• D)Perhaps the most extreme form of direct action that disgruntled shareholders can take is to hold a proxy contest and introduce a rival slate of directors for election to the board.

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Definitions:

Certification

The process of verifying that a person has met predetermined qualifications or standards, often involving formal assessment and the issuance of a certificate or credential.

Dodd-Frank Act

A comprehensive US financial reform legislation passed in 2010 to reduce systemic risk and increase transparency in the financial system.

Securities Exchange Act

A U.S. federal law that regulates the trading of securities such as stocks and bonds in the secondary market, ensuring transparency and fairness.

Misstatement

An error or inaccuracy in stating facts or details, often found in financial accounts or reports.