One way in which control of a corporation can be removed from the current board of directors is to:
A)take away the directors' stock.
B)give voting power to management.
C)remove the board's voting power.
D)fight a proxy contest.

Question

Quizplus · Accepted Answer

The best way to remove control from the current board of directors is to fight a proxy contest. This involves soliciting shareholders to vote for a new slate of directors, effectively replacing the current board. Removing the directors' stock (A) would not necessarily remove their control, as they may still have significant influence or be able to purchase more stock. Giving voting power to management (B) would not remove control from the current board, but instead shift it to a different group. Removing the board's voting power (C) would likely require a change in the company's bylaws or governance structure, which would be difficult to achieve without board approval.

One Way in Which Control of a Corporation Can Be