Shareholder Rights and Proxy Voting Limitations

Medium Corporate Governance Shareholder Rights

ABC Corporation has adopted a series of measures to enhance corporate governance practices, particularly concerning shareholder rights. The board of directors has proposed a resolution that seeks to limit the amount of proxy votes a single shareholder can cast in a company election to prevent any one shareholder from exerting undue influence on decision-making. This proposal has sparked a debate among shareholders regarding its implications on their voting rights.

As a shareholder of ABC Corporation, you are concerned about how this resolution could impact your ability to participate in governance matters, especially given that you hold a significant portion of shares. Which of the following statements accurately reflects the nature of shareholder rights in this context?

Shareholder rights can be restricted by internal company policies as long as they are approved by majority vote.

Shareholders have the inherent right to vote without limitations imposed by corporate governance decisions.

Proxy voting limits are common and may be employed to protect minority shareholders' interests.

Hint

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