If a group other than current management solicits the authority to vote shares as part of their effort to replace the current management team,a ________ is said to occur.
A)proxy fight
B)stockholder derivative action
C)tender offer
D)vote of confidence
E)seniority turnover

Question

Quizplus · Accepted Answer

A proxy fight occurs when a group of shareholders tries to obtain the authority to vote shares in an effort to replace the current management team. They do this by soliciting proxies from other shareholders to vote in their favor during a shareholder meeting. This is typically done when the group believes that the current management team is not acting in the best interest of the company or its shareholders.

If a Group Other Than Current Management Solicits the Authority