If a group other than management solicits the authority to vote shares to replace management,a _____ is said to occur.
A)proxy fight
B)shareholder derivative action
C)tender offer
D)vote of confidence
E)None of the above.

Question

Quizplus · Accepted Answer

A proxy fight is a battle for control of a corporation between shareholders and management. If a group of shareholders other than management seeks the power to vote shares to replace the existing management, then a proxy fight has occurred. The other options, shareholder derivative action, tender offer, and vote of confidence, do not involve a struggle for control of a corporation by shareholders against management.

If a Group Other Than Management Solicits the Authority to Vote