One of the most controversial issues in recent years has been proxy access. As previously discussed, although it is possible for dissatisfied shareholders to wage a proxy fight, it is usually not feasible to do so. A cost-effective solution would be to require management to include shareholder nominees on the company’s ballot sent to shareholders in advance of the annual meeting. In 2010, the SEC issued a new rule permitting shareholder groups (owning at least three percent of a company’s stock for at least three years) to submit nominees for inclusion in the company’s ballot; however, in 2011 a federal court struck down the regulation on procedural grounds. Nonetheless, pressure from a broad array of institutional investors has resulted in 71 percent of the S&P 500 adopting the “three percent rule” as of 2018, up from one percent in 2014. 

Question 

Evaluate the opinion that board accountability to shareholders is a myth.