Larry Nelson holds 1,000 shares of General Electric's (GE) common stock. The annual stockholder meeting is being held soon, but as a minor shareholder, Larry doesn't plan to attend. Larry did not sell his shares but gave his voting rights to the management group running General Electric (GE). Larry must have signed aproxy that gives the management group control over his shares.

True / False.

Question

Gavyn

Business

20 August, 04:00

Larry Nelson holds 1,000 shares of General Electric's (GE) common stock. The annual stockholder meeting is being held soon, but as a minor shareholder, Larry doesn't plan to attend. Larry did not sell his shares but gave his voting rights to the management group running General Electric (GE). Larry must have signed aproxy that gives the management group control over his shares.

True / False.

+4

Answers (1)

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Isla Burton · Answer 1

True

Explanation:

The reason is that the proxy agreement gives the control over the voting which is the main weapon that shareholders use to make decision in annual and general meetings. The shareholders who have lower holding in companies usually give their voting rights to other shareholders who can make difference in the general meetings. To do so, they have to sign a proxy agreement. So the statement is true.