One way in which control of a corporation can be removed from the current board of directors is to:
A) take away the directors' stock.
B) give voting power to management.
C) remove the Board's voting power.
D) fight a proxy contest.

Question

Quizplus · Accepted Answer

Fighting a proxy contest involves soliciting shareholders to vote for a new slate of directors, effectively removing the current board of directors from control. This is a common method used by activist investors to gain control of a corporation and implement change. Taking away the directors' stock or giving voting power to management would not necessarily remove control from the current board of directors, and removing the Board's voting power is not a practical option as they are responsible for making important decisions on behalf of the corporation.

One Way in Which Control of a Corporation Can Be