Proxy fights generally occur when a group is trying to:
A) rewrite the corporate charter.
B) bring about economies of scale.
C) replace the current board and management team.
D) pursue a public tender offer.

Question

Quizplus · Accepted Answer

Proxy fights occur when a group of shareholders tries to replace the current board and management team with their own nominees. This is usually done when the group is dissatisfied with the current leadership and believes that a change is necessary for the company's success. Rewriting the corporate charter and pursuing a public tender offer are less common reasons for proxy fights. Bringing about economies of scale can also be a reason for a proxy fight, but it is not as common as the desire to replace the current leadership.

Proxy Fights Generally Occur When a Group Is Trying To