Proxy fights are conducted in order to achieve a goal of:
A) changing the corporate charter.
B) bringing about economies of scale.
C) replacing the current board and management team.
D) having a public tender offer.

Question

Quizplus · Accepted Answer

Proxy fights are typically initiated by activist investors with the goal of replacing the current board and management team with those who will implement their desired changes or strategies. This is often done when the activist investor believes that the current leadership is not acting in the best interest of shareholders. The other options, changing the corporate charter, bringing about economies of scale, and having a public tender offer, may be possible outcomes of a successful proxy fight but are not the main objective.

Proxy Fights Are Conducted in Order to Achieve a Goal