Question

Which one of the following is a means by which shareholders can replace company management? Multiple Choice Stock options Promotion Sarbanes-Oxley Act Agency play Proxy fight

Answer 1

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.