A dissident group solicits votes in an attempt to replace existing management. This is called a
A)proxy fight.
B)shareholder derivative action.
C)tender offer.
D)management freeze-out.

Question

Quizplus · Accepted Answer

A dissident group soliciting votes in an attempt to replace existing management is called a proxy fight. The dissident group tries to sway shareholders to vote in favor of their proposed slate of directors or proposals, which could lead to a change in management. Shareholder derivative actions involve a lawsuit brought by shareholders on behalf of the company against the company's management and board of directors. Tender offers are made by an external entity to purchase a large number of shares from a company's shareholders. A management freeze-out is when the controlling shareholders of a company use their power to squeeze out minority shareholders.

A Dissident Group Solicits Votes in an Attempt to Replace