When a large shareholder or a group solicits vote for a slate of directors that it has proposed as an alternative to candidates endorsed by the current board, a(n) _____ takes place.
A)acquisition
B)proxy fight
C)merger
D)leveraged buyout

Question

Quizplus · Accepted Answer

A proxy fight takes place when a large shareholder or group solicits votes for a slate of directors as an alternative to the candidates endorsed by the current board. It is a way for shareholders to exert control over the company's management and direction. An acquisition is when one company purchases another, a merger is when two companies combine to form a new entity, and a leveraged buyout is when a company is acquired using a significant amount of debt. None of these options accurately describe a situation where shareholders are soliciting votes for board members.

When a Large Shareholder or a Group Solicits Vote for a Slate