Tо аvоid the pоssibility thаt confirmаtion bias may lead us to perceive an illusory correlation, we need to focus on which of the following?
Pоlly is а shаrehоlder whо owns of 10 shаres of common stock in ABC, Inc., a public corporation and manufacturer of urban chemical herbicides. ABC has several hundred shareholders, and its board has 15 directors. Dennis, the chairman of ABC’s board, is also a shareholder. For its last fiscal year, ABC had over $20 million in total assets and about $10 million in net profits, but sales of urban chemical herbicides were under $1 million. ABC is currently in financial distress, largely due to several poor real estate investment decisions made by ABC’s board at Dennis’ recommendation. The purchases were large unimproved land parcels that Dennis believed were going to be near a new housing development project, but his information from the city’s long-range planning was incorrect. Polly has submitted to the ABC board a proposed resolution concerning the manufacturing process used by ABC. Concerned about recent cancers being reported in children near where ABC urban chemical herbicides are sold, Polly’s resolution calls upon the directors of ABC to establish an oversight committee to study the methods used by ABC, determine how safe its chemical herbicides are for urban housing areas, and to report their findings to the shareholders. Another ABC shareholder, Patrick, also submitted a proposal to ABC’s board for inclusion in its proxy materials. Patrick’s proposal would amend ABC’s bylaws to require under certain circumstances that ABC publish the names of all shareholder-nominated candidates for director positions along with any candidates nominated by ABC’s board. ABC refused to include both Polly and Patrick’s proposals in its proxy materials. Polly and Patrick have each separately filed suit against ABC seeking to bar it from excluding their proposals in its proxy materials at the next shareholder meeting. Additionally, Patrick has sued Dennis in a derivative action alleging breach of fiduciary duty, and claims Dennis personally benefited from the real estate purchases he urged ABC’s board to make. Discuss Polly’s suit against ABC for excluding her proposal, and any defenses. Discuss Patrick’s suit against ABC for excluding his proposal, and any defenses. Discuss Patrick’s derivative suit against Dennis, including what procedural requirements he must satisfy.