Which of the following statements is FALSE?
A. If managers have large ownership stakes, then shareholders are more likely to use compensation policies or a
stronger
board to create
the desired incentives.
OB. A shareholder resolution could direct the board to take a specific action, such as discontinue investing in a particular
line of business or
country, or remove a poison pill.
OC. If all else fails, the shareholders' last line of defense against expropriation by self-interested managers is direct action.
OD. Any shareholder can submit a resolution that is put to a vote at the annual meeting.