A proxy fight occurs when:
A) the board solicits renewal of current members.
B) a group solicits proxies to replace the board of directors.
C) a competitor offers to sell their ownership in the firm.
D) the firm files for bankruptcy.
E) the firm is declared insolvent.

Question

Quizplus · Accepted Answer

A proxy fight occurs when a group of shareholders seeks to gain control of a company's board of directors by soliciting proxies from other shareholders in order to replace the existing board members. This is usually done when the group believes that the current board has been ineffective or is not acting in the best interests of shareholders.

A Proxy Fight Occurs When