One of the reasons why proxy fights are rarely successful is that:
A)management is always viewed as performing their jobs well.
B)management can use corporate resources to defend against the fight.
C)mergers are a cheaper form of changing management.
D)shareholders are unconcerned with corporate management.

Question

Quizplus · Accepted Answer

Management can use corporate resources to defend against the fight, such as hiring a proxy solicitation firm or launching a public relations campaign. This can make it difficult for the shareholder group conducting the proxy fight to gain enough support to be successful.

One of the Reasons Why Proxy Fights Are Rarely Successful