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

A proxy contest is primarily aimed at allowing a group of shareholders to accumulate enough votes to gain control or significant influence over the company's board of directors, thereby affecting its policies and direction.

The Purpose of a Proxy Contest Is for a Group