The purpose of a proxy contest is for a group of shareholders to:
A) Acquire all of the remaining outstanding shares.
B) Accumulate suﬃcient votes to gain controlling seats on the board of directors.
C) Take a company private.
D) Maintain their current percentage ownership once a stock dividend is declared.
E) Gain control of the preferred stock.

Question

Quizplus · Accepted Answer

The purpose of a proxy contest is to accumulate sufficient votes to gain controlling seats on the board of directors. This allows the shareholders to have a direct say in the company's decisions and potentially bring about changes that they believe will benefit the company and its shareholders.

The Purpose of a Proxy Contest Is for a Group