State the amendments made to Rule 14(a) in 1983 with respect to exclusion of a shareholder proposal
What will be an ideal response?
The Securities and Exchange Commission amended Rule 14(a) in 1983 to allow management to exclude a shareholder proposal if:
a. under the particular state law governing the corporation, the proposal would be unlawful if agreed to by the directors;
b. it involves a personal grievance;
c. it is related to ordinary operational business functions;
d. it is a matter not significantly related to the company's business (the commission has defined this criterion as matters accounting for less than 5 percent of the assets, earnings, and sales of a company);
e. the stockholder making the proposal has not owned more than $1,000 worth of stock or
1 percent of the shares outstanding for a period of 1 year or more (although several shareholders may accumulate shares to meet this criterion); and
f. the shareholder proposal received less than 5 percent of the votes when submitted in a previous year.
Furthermore, shareholders are limited to one proposal per annual company meeting.
You might also like to view...
Which of the following circumstances are best suited for personal selling?
A) when the products used are simple and easy-to-use B) when there is minimal risk involved in buying or using the products C) when the market has fewer and larger sellers D) when the products being marketed are inexpensive and easily available E) when prospective customers are spread across a wide geographic area
A(n) ________ distribution intensity helps a seller maintain a particular image and control the flow of merchandise into an area.
A. intensive B. variable C. collective D. widespread E. selective
The Taft-Hartley Act covers most private-sector employers and nonmanagerial employees, except railroad and airline employees. Why?
What will be an ideal response?
Ron is the business agent for Kansas Sunshine, a rock band. He is also the agent for another popular Midwestern rock group, City Sand. Ron negotiates a deal with a Kansas City promoter to have City Sand play after a professional football game. The promoter was willing to pay $250,000 for both groups to play after the game; however, Ron talked her into booking just City Sand for $175,000 . Given
his contract with City Sand, Ron made more money under this arrangement. Has Ron violated his fiduciary duty to Kansas Sunshine? a. Yes. It appears that Ron put his own interests ahead of his principal's interests. b. Yes. Ron cannot, under any circumstances, act as an agent for both groups. c. Both a and b are correct. d. Neither a nor b is correct since it is very common for rock band agents to represent several groups at the same time.