A proxy contest can best be defined as:
A) A corporate takeover bid communicated to the shareholders through a stock exchange.
B) Attempts to gain control of a firm by soliciting a sufficient number of shareholder votes to replace existing management.
C) All publicly owned stock in a firm is replaced with complete equity ownership by a private group.
D) Going private transactions in which a large percentage of the money used to buy the stock is borrowed. Often incumbent management is involved.
E) Agreement between firms to cooperate in pursuit of a joint goal.

Question

Quizplus · Accepted Answer

A proxy contest involves soliciting shareholder votes to replace existing management in an effort to gain control of the company. This is distinct from other corporate actions like takeover bids, going private transactions, or agreements between firms.

A Proxy Contest Can Best Be Defined As