Some of ABS's shareholders are dissatisfied with the company's performance.These shareholders are squaring off against the principal players in the firm with each side trying to garner sufficient votes to elect their preferred candidates to the board of directors.Which one of these terms best fits this situation?
A)Stock acquisition
B)Management buyout
C)Pooling of interests
D)Proxy contest
E)Dual class capitalization

Question

Quizplus · Accepted Answer

This situation is describing a proxy contest, where shareholders are attempting to gain control over the board of directors by soliciting proxies from other shareholders to vote for their preferred candidates. This is a common tactic used by dissatisfied shareholders to push for changes in company leadership or strategy. None of the other options fit this scenario as well.

Some of ABS's Shareholders Are Dissatisfied with the Company's Performance