A proxy contest is typically one in which:
A)the board attempts to gain control from the shareholders.
B)management attempts to gain control from the directors.
C)outsiders attempt to gain control from management.
D)the board attempts to gain control from the directors.

Question

Quizplus · Accepted Answer

In a proxy contest, a group of outsiders (usually shareholders) attempt to gain control of the company's board of directors and thereby influence the company's management. The goal of the outsiders is to convince enough shareholders to vote for their proposed director nominees and replace the current board members with their own candidates. This is typically done through the use of proxies, where shareholders authorize someone else to vote on their behalf at the company's annual meeting. Therefore, choice C is the most accurate description of a proxy contest.

A Proxy Contest Is Typically One in Which