The attempt by a non-management group to gain control of the management of a firm by soliciting a sufficient number of proxy votes is called
A) hostile takeover.
B) supervoting shares.
C) proxy battle.
D) none of the above.

Question

Quizplus · Accepted Answer

A proxy battle is a form of hostile takeover where a non-management group seeks to gain control of the management of a firm by soliciting a sufficient number of proxy votes from other shareholders to vote in favor of their proposed slate of directors. Therefore, option C is the correct answer. Option A is incorrect because a hostile takeover typically involves a more aggressive attempt by an outside group to gain control of a firm, often through the purchase of a majority of the company's shares. Option B is incorrect because supervoting shares refer to shares that give the holder more voting power than regular shares, but it is not directly related to a proxy battle.

The Attempt by a Non-Management Group to Gain Control of the Management