Active investors consider capital structure and financial stability when voting on share issuance proposals.
Why A (Share issuance) is correct:
Issuing new shares dilutes existing shareholders and may signal financial distress.
Investors may vote against excessive share issuance if it weakens capital structure.
Why not B or C?
B (Auditor’s compensation) relates to governance and oversight, not capital structure.
C (Reelection of board directors) is important but does not directly affect capital structure.
[References:, Institutional Shareholder Services (ISS) Voting Guidelines on Capital Issuance, , , , , ]
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