If a group other than management solicits the authority to vote shares to replace management, a _____ is said to occur.
A)proxy ﬁght
B)shareholder derivative action
C)tender offer
D)vote of conﬁdence
E)None of the above.

Question

Quizplus · Accepted Answer

When a group of shareholders, other than management, seeks to gain the authority to vote shares in order to replace the current management, they typically do so through a proxy fight. During a proxy fight, the dissident shareholders seek to persuade other shareholders to vote for their proposed slate of directors, who will be more likely to carry out the changes they believe are necessary for the company's success.

If a Group Other Than Management Solicits the Authority to Vote