If shareholders are not happy with a company's management, a proxy fight is one method that can be used to attempt to remove managers.Which of the following is true, with regard to a proxy fight?

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Quizplus · Accepted Answer

Proxy fights can be very expensive and time consuming, as they typically involve hiring advisors and soliciting votes from other shareholders. Additionally, there is no guarantee of success in a proxy fight, and it may be more effective for a large shareholder to sell their shares and move on rather than engage in a lengthy battle. Option A is incorrect, as even with a small holding a shareholder would still need to incur additional expenses to participate in a proxy fight. Option B is also incorrect, as large shareholders may prefer to sell their shares rather than engage in a proxy fight. Option C is incorrect, as most proxy fights are not successful.

If Shareholders Are Not Happy with a Company's Management, a Proxy