If a group of outsiders solicits the authority to vote shares to replace existing management, then it is called a:
A) Tender offer
B) Proxy contest
C) Vote of confidence
D) None of the above

Question

Quizplus · Accepted Answer

The scenario described is a proxy contest, as outsiders are soliciting authority to vote shares in order to replace existing management. A tender offer is a formal proposal by an acquirer to purchase a significant portion or all of a target company's shares at a premium price. A vote of confidence is a show of support for existing management by shareholders, and is not applicable in this scenario.

If a Group of Outsiders Solicits the Authority to Vote