A proxy contest happens when insurgent shareholders challenge the incumbent directors.

Question

Quizplus · Accepted Answer

This is true. A proxy contest is a battle for control of a company's board of directors, where a group of shareholders attempt to replace the current board with their own slate of directors. It is often a strategy used by activist investors who believe that the current board is not acting in the best interest of shareholders. The insurgent shareholders typically create a proxy statement and solicit other shareholders to vote in favor of their proposed directors.

A Proxy Contest Happens When Insurgent Shareholders Challenge the Incumbent