Which of the following is the best definition of a proxy contests?
A) The splitting up of a company into two or more companies.
B) The distribution of shares in a subsidiary to existing parent company shareholders.
C) Provisions allowing existing shareholders to purchase stock at some fixed price should an outside takeover bid take place, discouraging hostile takeover attempts.
D) Attempts to gain control of a firm by soliciting a sufficient number of shareholder votes to replace existing management.
E) A financial device designed to make unfriendly takeover attempts unappealing, if not impossible.

Question

Quizplus · Accepted Answer

Proxy contests involve efforts to gain control of a company by soliciting shareholder votes to replace the existing management, often in the context of corporate governance disputes or takeover attempts.

Which of the Following Is the Best Definition of a Proxy