Final answer:
The statement that a proxy is a legal form that lists issues to be decided at a stockholders' meeting and requests stockholders to transfer their voting rights is true for public companies.
Step-by-step explanation:
A proxy is indeed a legal document that is related to company governance and shareholder voting, but the student's definition conflates it with a healthcare proxy, which is another type of legal instrument entirely. The correct definition of a proxy in a business context is a document that allows a shareholder of a public company to authorize another person to vote on their behalf at a shareholders' meeting. This means that the statement in the question is true as the proxy lists the decisions to be made at the meeting and requests the transfer of voting rights, normally when the shareholder cannot attend in person.
Ownership of stock in a corporation grants the shareholder voting rights, often executed at the annual general meeting (AGM) or other special meetings. Shareholders vote on a variety of issues, including the election of the company’s board of directors. Proxies are particularly important for collecting votes from a vast number of shareholders, thereby ensuring their interests are represented even in their absence.
The number of votes a shareholder has is generally proportional to the number of shares they own. Hence, those with more shares have a greater influence on the decisions made within the company.