Final answer:
Proxy access refers to the ability of shareholders to nominate and place their own candidates for election to a company's board of directors. It is an important mechanism for shareholder activism and corporate democracy.
Step-by-step explanation:
Proxy access refers to the ability of shareholders to nominate and place their own candidates for election to a company's board of directors. It allows shareholders to have a greater say in corporate governance and influence decision-making processes.
For example, if a shareholder believes that the current board of directors is not acting in the best interest of the company, they can use proxy access to propose their own candidates. This can lead to a more diverse and independent board, ensuring better accountability and oversight.
Proxy access is an important mechanism for shareholder activism and corporate democracy, giving shareholders the power to shape the leadership and direction of a company.