A proxy fight occurs whenever
A)any board member is up for re-election.
B)a firm files for bankruptcy.
C)a shareholder sells shares in the open market.
D)a group solicits votes to replace the current board of directors.
E)a firm is declared insolvent.

Question

Quizplus · Accepted Answer

A proxy fight occurs when a group of shareholders, usually led by a large institutional investor, solicits votes from other shareholders to replace the current board of directors with a new one that is more aligned with their interests. This is a common tactic used by activist investors to try and influence the strategic direction of a company. The other options do not involve a proxy fight.

A Proxy Fight Occurs Whenever