What is the name of the document issued to shareholders when their vote is needed on important matters?

What is the name of the document issued to shareholders when their vote is needed on important matters?

• A. Annual Report
• B. Form 10-K
• C. Proxy statement
• D. Form 8-K

Answer: (C)

The document issued to shareholders when their vote is needed on important matters is the proxy statement. This document contains essential information that shareholders require to make informed decisions regarding matters such as the election of board members, approval of mergers or acquisitions, and shareholder proposals. The proxy statement explains the issues to be voted on and provides details about the company’s performance, management's recommendations, and background information on any nominees or proposals being presented. Shareholders can use the information in the proxy statement to vote in person at the shareholder meeting or to give their voting rights to someone else (by proxy). This process is crucial for maintaining corporate governance and ensuring that shareholders have a voice in significant company decisions. In contrast, the other documents listed serve different purposes: the annual report offers a comprehensive overview of the company’s financial performance over the past year, the Form 10-K presents a detailed annual report required by the SEC that includes financial statements and disclosures, and Form 8-K is used to report major events that shareholders should know about but is not specifically for soliciting votes.

The document issued to shareholders when their vote is needed on important matters is the proxy statement. This document contains essential information that shareholders require to make informed decisions regarding matters such as the election of board members, approval of mergers or acquisitions, and shareholder proposals.

The proxy statement explains the issues to be voted on and provides details about the company’s performance, management's recommendations, and background information on any nominees or proposals being presented. Shareholders can use the information in the proxy statement to vote in person at the shareholder meeting or to give their voting rights to someone else (by proxy). This process is crucial for maintaining corporate governance and ensuring that shareholders have a voice in significant company decisions.

In contrast, the other documents listed serve different purposes: the annual report offers a comprehensive overview of the company’s financial performance over the past year, the Form 10-K presents a detailed annual report required by the SEC that includes financial statements and disclosures, and Form 8-K is used to report major events that shareholders should know about but is not specifically for soliciting votes.