The rare event where a firm's existing directors and management compete with outsiders for the effective control of the corporation is called:
A) majority voting
B) supermajority amendment
C) proxy contest
D) none of the above

Question

Quizplus · Accepted Answer

A proxy contest is a rare event where a group of shareholders, led by an outsider, challenges the existing management to gain effective control of the corporation by soliciting proxies from shareholders. Majority voting and supermajority amendment are procedures for making decisions in a shareholder meeting and do not involve a contest for control.

The Rare Event Where a Firm's Existing Directors and Management