A proxy is a document giving one party the authority to act for another party, including the power to vote shares of common stock. Proxies can be important tools relating to control of firms. True or False?

True

Explanation:

The reason is that many investors don't have time to attend the annual general and other meetings with the management or the cost of attending the meeting outweighs the benefit of attending the meeting. So what they do is they deliver their right to vote to other shareholder which he thinks will act in the best interest of all the shareholders. So this is what happens in the proxy arrangement. The scenario talks about the proxy is delegation of authority to vote and power of decision making is given to the other person.