When unhappy, shareholders solicit other shareholders to join them in removing certain board members, the action is called a:
A)a staggering of the election of directors.
B)seeking a white knight.
C)a proxy fight.
D)the board's adoption of a poison pill.

Question

Quizplus · Accepted Answer

Shareholders soliciting other shareholders to remove certain board members through a proxy fight is a common tactic used to gain control of the board and make changes in the company's leadership. A staggering of the election of directors refers to a process where only a certain number of directors are elected at a time, seeking a white knight refers to a situation where a third party is brought in to help a company defend against a hostile takeover, and the adoption of a poison pill refers to a defensive strategy used by a board to make the company less attractive to potential acquirers.

When Unhappy, Shareholders Solicit Other Shareholders to Join Them in Removing