___________is a devise whereby a stockholder authorizes another person or group of persons to act for him at a meeting of stockholders.

Question

Options

• APreliminary statement
• BTriggering event
• CChange of servicer
• DProxy

• A
  5% (1)
• B
  5% (1)
• C
  14% (3)
• D
  77% (17)

Explanation

D (Proxy) is correct because a proxy is a legal instrument that allows a shareholder to delegate their voting authority to another person or entity, enabling representation at stockholder meetings without personal attendance.

Why the distractors are wrong:

• A. Preliminary statement - This is a disclosure document filed with the SEC before a proxy solicitation, not the authorization device itself.
• B. Triggering event - This term refers to a specific condition that activates a contractual clause (common in bonds or M&A agreements), unrelated to stockholder voting.
• C. Change of servicer - This is a term from asset-backed securities referring to replacing the loan servicer, with no connection to stockholder meetings.

Memory tip: Think of a proxy like giving someone your "voting power of attorney" - just as a power of attorney lets someone act on your behalf legally, a proxy lets someone vote your shares on your behalf at a meeting.

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