What is the primary purpose of a proxy statement?

The primary purpose of a proxy statement is to solicit shareholder votes. This document is a crucial part of corporate governance as it provides shareholders with the necessary information to make informed decisions regarding matters that will be voted on at a shareholder meeting. This can include proposals such as the election of directors, changes to corporate policies, or other significant actions that require shareholder approval.

A proxy statement ensures that shareholders are not only informed about these issues but also gives them the opportunity to grant someone else the authority to vote on their behalf if they are unable to attend the meeting. The importance of this document lies in its role in facilitating shareholder participation in corporate decision-making, which is essential for maintaining transparency and accountability within a company.

The other choices, while related to aspects of a company’s activities, do not capture the primary reason for a proxy statement. Summarizing annual performance, reporting insider trading, and presenting investment opportunities are functions served by other filings and reports, but they do not reflect the primary aim of soliciting votes.