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An article in BusinessWeek stated that the Allstate Corporation, a large insurance company
An article in BusinessWeek stated that the Allstate Corporation, a large insurance company, would begin to require a simple majority vote of shareholders, rather than a two-thirds majority vote, to elect members to its board of directors and to remove directors in between annual meetings when elections are held. The article also stated that the price of Allstate’s stock rose following the announcement. Briefly discuss whether there may have been a connection between these changes in Allstate’s corporate governance and the increase in the firm’s stock price. Based on “Allstate Announces Changes to Governance,” Business- Week, February 20, 2007.
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