Final answer:
The voluntary ABN replaced the traditional director nomination process in corporate governance, allowing shareholders more flexibility in nominating board members and promoting shareholder democracy.
Step-by-step explanation:
The voluntary Alternate Board Nomination (ABN) form replaced the traditional, more rigid director nomination process within corporate governance. This new voluntary form allows shareholders to have a more streamlined and flexible approach when nominating individuals to a company's board of directors. It supports the idea of shareholder democracy by giving more power to shareholders in influencing the composition of the board, as opposed to the previous method which typically involved a nomination committee selecting a slate of candidates for board positions.
By introducing the voluntary ABN, companies aim to leverage the collective insight of their shareholders, which could lead to a board that better represents the interests of the stakeholders. Moreover, it can contribute to the creation of a more diversified board in terms of skill sets, experience, and perspectives, which is often linked to better corporate performance and governance.