A proxy battle is the attempt by
A) the creditors of a bankrupt firm to seize assets.
B) the management to dismiss the board of directors.
C) a nonmanagement group to gain control of the management of a firm through the solicitation of a sufficient number of corporate votes.
D) the employees to unionize.

Question

Quizplus · Accepted Answer

A proxy battle occurs when a nonmanagement group attempts to gain control of the management of a firm by soliciting a sufficient number of corporate votes. This is typically done by sending out proxy statements to shareholders, urging them to vote for a slate of new directors who are more sympathetic to the group's goals. The ultimate goal of the proxy battle is to gain control of the company's management and implement changes that are more in line with the group's interests.

A Proxy Battle Is the Attempt by