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 refer to attempts by shareholders to gain control of a company by soliciting votes from other shareholders to replace the existing management. This can include nominating alternative candidates for the board of directors or proposing other changes to company policies.

Which of the Following Is the Best Deﬁnition of a Proxy