Assessing Shareholder Rights in Proxy Battles

When assessing corporate governance frameworks within publicly traded companies, particularly in regard to shareholder rights, it is essential to understand how these rights can influence decision-making processes. Consider a scenario where a publicly traded company is facing a proxy battle initiated by a group of shareholders advocating for a management change due to perceived underperformance. The company’s board of directors has proposed a restructuring plan intended to address these concerns, yet the opposing shareholders argue that the proposal does not sufficiently empower shareholders or protect their rights.

Which of the following statements best reflects a fundamental shareholder right that may be compromised in such a scenario?