Which one of the following is a means by which shareholders can replace company management? Multiple Choice Stock options Promot

Question

yulyashka [42]

3 years ago

7

Which one of the following is a means by which shareholders can replace company management? Multiple Choice Stock options Promot

ion Sarbanes-Oxley Act Agency play Proxy fight

Business

1 answer:

Katena32 [7] · Answer 1 · 2022-05-15T10:09:13+03:00

Answer:

Proxy Fight

Explanation:

Proxy fight refers to that scenario wherein a group of shareholders coming together so as to gain more shareholder proxies and thus gain majority of the votes.

In such cases, outsiders convince the existing shareholders of a corporation to vote against the management and thus collectively lead to it's replacement.

This represents one of the common means of corporate takeover.

Disgruntled shareholders may unite against a management decision or any sort of oppressive policies by such means, usurp the existing management and appoint their own preferred candidates as their replacement.