A dissident group solicits votes in an attempt to replace existing management.This is called a:
A)tender offer.
B)shareholder derivative action.
C)proxy contest.
D)management freeze-out.
E)shareholder's revenge.

Question

Quizplus · Accepted Answer

A proxy contest is a situation in which a dissident group solicits votes from shareholders to replace existing management. Tender offer is an offer to buy shares directly from shareholders. Shareholder derivative action is a lawsuit brought by a shareholder on behalf of the corporation. Management freeze-out is a situation in which the management tries to push out minority shareholders. Shareholder's revenge is not a commonly used term in finance or business.

A Dissident Group Solicits Votes in an Attempt to Replace